Charles R. Harp and April B. Harp - Page 15

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                              In their 1989 return, petitioners reported total income of                                                                                   
                    $24,034 consisting of the following:                                                                                                                   
                                                  Wages and salaries                                $4,8166                                                                
                                                  Interest                                          365                                                                    
                                                  Business income                                   17,203                                                                 
                                                  Capital gain                                      71                                                                     
                                                  Ordinary gain                                     1,579                                                                  
                              In Schedule C of their 1989 return, petitioners reported                                                                                     
                    $465,400 of gross receipts, $448,197 of expenses, and $17,203 of                                                                                       
                    profit from the operations of petitioner's sole proprietorship                                                                                         
                    Charles Harp Construction that they described therein as a                                                                                             
                    general contracting business.  Petitioners did not report in                                                                                           
                    Schedule C, or elsewhere, in their return for that year income                                                                                         
                    from any business other than Charles Harp Construction.                                                                                                
                              In their 1990 return, petitioners reported total income of                                                                                   
                    $42,326 consisting of the following:                                                                                                                   
                                                  Wages and salaries                                $34,7547                                                               
                                                  Interest                                          711                                                                    
                                                  Business income                                   6,861                                                                  
                              In Schedule C of their 1990 return, petitioners reported                                                                                     
                    $195,300 of gross receipts, $188,439 of expenses, and $6,861 of                                                                                        
                    profit from the operations of petitioner's sole proprietorship                                                                                         
                    Charles Harp Construction that they described therein as a                                                                                             


                    6  The amount of wages and salaries reported in petitioners' 1989                                                                                      
                    return is equal to the total of the amounts of wages and salaries                                                                                      
                    reflected in Forms W-2 issued to Ms. Harp for 1989.                                                                                                    
                    7  The amount of wages and salaries reported in petitioners' 1990                                                                                      
                    return is equal to the total of the amounts of wages and salaries                                                                                      
                    reflected in Forms W-2 issued to petitioner and Ms. Harp, respec-                                                                                      
                    tively, for 1990.                                                                                                                                      




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