Haralampos Katerelos and Irene Katerelos - Page 4

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            purchased used, and not new.  One of the items that petitioners                               
            furnished NDV was a Casio cash register (cash register) that they                             
            purchased during 1986 from Cactus King Cash Register Co. (Cactus                              
            King).  The cash register functioned properly throughout the                                  
            years at issue.                                                                               
                  Petitioners opened NDV for business in April 1986 and                                   
            operated it as a sole proprietorship throughout the years at                                  
            issue.  During those years, NDV served breakfast, lunch, and                                  
            dinner, seven days a week, from approximately 7 a.m. to about 10                              
            p.m., except on approximately five days during each such year                                 
            when it was closed for certain holidays.                                                      
                  Throughout the years at issue, Mr. Katerelos, who was                                   
            responsible for the management of NDV, worked approximately 105                               
            hours per week at that restaurant and was involved in every                                   
            aspect of its operations, including mopping the floors, washing                               
            the dishes, cooking the food, and purchasing the supplies.                                    
            During those years, petitioner Irene Katerelos (Ms. Katerelos),                               
            petitioners' daughter Anneta, and Mr. Katerelos' brother                                      
            Evangelos also worked at NDV.                                                                 
                  During the years at issue, NDV's highest sales volumes                                  
            generally occurred on Friday and Saturday evenings and on Sunday                              
            mornings and afternoons.  It also experienced large sales volumes                             
            on special days such as Mother's Day and Valentine's Day.  The                                
            winter months were the busiest months for NDV because of the high                             





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