Richard D. Hudson and Betty L. Hudson - Page 1

                                         T.C. Memo. 1996-106                                              

                                      UNITED STATES TAX COURT                                             

                   RICHARD D. HUDSON AND BETTY L. HUDSON, Petitioners v.                                  
                         COMMISSIONER OF INTERNAL REVENUE, Respondent                                     

                  Docket No. 4119-94.               Filed March 7, 1996.                                  

                  Philip A. Sallee, for petitioners.                                                      
                  Ronald T. Jordan, for respondent.                                                       

                                         MEMORANDUM OPINION                                               

                  LARO, Judge:  This case is before the Court fully                                       
            stipulated.  See Rule 122.  Richard D. Hudson and Betty L. Hudson                             
            petitioned the Court to redetermine respondent's determination of                             
            deficiencies in their 1987 and 1988 Federal income taxes and                                  

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