AMW Investments, Inc. - Page 6

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          domestic trust, the Durand Trust, which owned all the stock of              
          Dynamic, which owned many of Mr. Mohney's operating companies.              
               Shortly after petitioner's incorporation, Mr. Mohney                   
          transferred to it the Mishawaka property and the Clarksville                
          property.1  The transfer was not negotiated, and the deeds on the           
          Clarksville property and the Mishawaka property were recorded on            
          September 5, 1978 and March 21, 1980, respectively.  In                     
          connection with the transfer, petitioner assumed liability on the           
          Clarksville note, the principal of which was then $34,350.                  
          Petitioner also issued Mr. Mohney a promissory note for the                 
          Clarksville property (Second Clarksville note).2  The Second                
          Clarksville note stated that petitioner was to pay Mr. Mohney               
          $120,000 on or before November 3, 1982.  It set forth an interest           
          rate of 10 percent, and it was signed by petitioner's then                  
          president.  Petitioner made no payments of principal or interest            
          to Mr. Mohney during the years 1977 through 1988 on the Second              
          Clarksville note, and Mr. Mohney did not pursue collection of the           

               1 Mr. Mohney's 1977 Federal income tax return did not report           
          either transfer as a sale.                                                  
               2 Petitioner also alleges that it issued a $45,000 note to             
          Mr. Mohney in connection with the transfer of the Mishawaka                 
          property.  Petitioner did not produce any such note at trial, and           
          no payments were made on the alleged note before 1989.  The                 
          record does not indicate that Mr. Mohney attempted to pursue                
          collection of any obligation from petitioner to him with respect            
          to the Mishawaka property.                                                  

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