Foretravel, Inc. - Page 5

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            employees.  Petitioner decided to become more involved at the                                  
            dealer level and, in 1979, petitioner took over a dealership in                                
            California (the California dealership) that owed petitioner                                    
            money.                                                                                         
                  The Fores traveled to California to run the California                                   
            dealership, and they managed to boost sales from 3 coaches a                                   
            month to over 20 a month.  The Fores continued to operate the                                  
            California dealership until the middle of 1980 when they returned                              
            to Nacogdoches, Texas.  Due to the success of the California                                   
            dealership, petitioner purchased other dealerships in Texas,                                   
            Tennessee, and Florida.  In each case, these other dealerships                                 
            were existing businesses that sold other vacation vehicles, such                               
            as trailers and inexpensive motor homes, in addition to selling                                
            Foretravel coaches.  The California dealership was the only                                    
            dealership suffering financial problems when purchased by                                      
            petitioner.                                                                                    
                  By 1989, petitioner owned 100 percent of the stock of                                    
            Foretravel of Arizona, Inc. (the Arizona dealership), but the                                  
            Arizona dealership closed in 1989 following a change in Arizona                                
            State law.  Petitioner also owned 100 percent of the stock of                                  
            Investments in General, Inc. (IIG).  IIG had four wholly owned                                 
            subsidiaries:  Foretravel of California, Inc. (the California                                  
            dealership); Foretravel of Florida, Inc. (the Florida                                          
            dealership); Murphy Motor Manors, Inc. (the Tennessee                                          






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