J.J. Zand - Page 221

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          Lockheed in settlement of an outstanding obligation for the sales           
          of the P-3 aircraft; $381,600 was attributable to a Lockheed                
          contract obligation for the C-130 aircraft.  The 1976 CTC cash              
          receipts journal lists $321,066 of this payment (approximately              
          two-thirds) as "Commissions-DPTC" and the remaining $160,533.34             
          as "Commissions-Caspian".  Petitioner included $160,533.34 of               
          this termination payment in his 1976 gross income and excluded              
          the remaining $321,066.                                                     
               In an attachment to a letter dated June 20, 1979, from                 
          Mr. Stephen E. Dutton to Williams & Connolly, Mr. Dutton outlined           
          the following summary of WHIP receipts and disbursements that he            
          indicated he had prepared from bank statements:                             
               Receipts:                                                              
                    Lockheed                 $1,476,786.58                            
                    Banque de Paris          240,000.00                               
                    Interest                 111,211.00                               
                    Galion                   110,000.00                               
                    Diesel Power             47,000.00                                

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