Donald Ferry and Sharon Ferry - Page 4

                                                  - 4 -                                                    

            amount of $124,879.  Prior to trial, respondent conceded $39,648                               
            of the adjustment for 1988.  Thus, respondent now claims                                       
            petitioners' income for 1988 was understated in the amount of                                  
            $85,231.                                                                                       
                  Respondent determined that petitioners failed to report the                              
            following amounts of bank deposits as income for the taxable year                              
            1987:                                                                                          
                  I.H.R-L LTD bank account           $103,514                                              
                  Ferry Associates bank account        22,503                                              
                                                              $126,017                                     
                         plus                                                                              
                  Personal expenses paid from                                                              
            MIT LTD bank account                 8,126                                                     
            Less W-2 reported income from                                                                  
            Wayanne, Inc.                    (3,911)                                                       
            Difference                      4,215                                                          
                                            1987 understatement           130,232                          
                  Respondent determined an understatement based on bank                                    
            deposits in 1988 as follows:                                                                   
                  I.H.R-L LTD bank account                    $47,458                                      
            Ferry Associates bank account       12,175                                                     
                  R.E.P., LTD bank account            24,290                                               
                                                                                $83,923                   
                               plus                                                                        
                  Personal expenses paid from                                                              
                  MIT LTD bank account                                     1,308                           
                                            1988 understatement           185,231                          
                  1  Apparently, respondent's concession for 1988 described                                
            above takes into account the Form W-2 wages reported from                                      
            Wayanne, Inc.                                                                                  




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011