Richard A. and Carol B. Little - Page 9

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               Petitioner bought 6,800 shares of Dondi Financial stock                
          on January 1, 1985.  Petitioner paid $727,600 for the stock.                
          Petitioner paid $109,140 in cash and executed a note for                    
          $618,460.  The cash consisted of $6,975 from deferred                       
          compensation, $3,083 from interest on the deferred compensation,            
          $30,600 from accrued dividends, and $68,482 from a loan from                
          Vernon.  The loan from Vernon was evidenced by a 5-year note for            
          $68,482 and secured by petitioner's savings account.  Petitioner            
          paid the $68,482 note in 1986.                                              
               The $618,460 note was payable to Dondi Financial.  The note            
          required petitioner to make quarterly payments and had an                   
          interest rate of 11.25 percent.  The note was fully recourse.               
          Petitioner pledged his Dondi Financial stock as security for the            
          note.  From February 28, 1985, to July 14, 1986, petitioner paid            
          $107,160.92 on the note.                                                    
               Petitioner agreed to give Dixon, Dondi Financial, and the              
          other Dondi Financial shareholders an option to buy petitioner's            
          Dondi Financial stock if he stopped working for Dondi Financial.            
          Dixon had the first right to buy the shares.  If Dixon did not              
          buy the stock within 30 days, Dondi Financial could exercise its            
          option.  If Dondi Financial did not do so, the shareholders could           
          buy the stock pro rata.  If neither Dixon, Dondi Financial, nor             
          the other shareholders exercised their option, Dondi Financial              
          had to buy the stock.                                                       






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