Clinton N. and Naomi K. Bohannon - Page 6

                                                   6                                                    
            1985, and 1986.  Loans from shareholders of $925,049 were                                   
            reported on the 1987 corporate return.  No loans from                                       
            shareholders were reported on the 1988 and 1989 corporate                                   
            returns.                                                                                    
                  Bob Wade Ford never made a profit.  Bob Wade Ford reported                            
            losses on its Forms 1120S (S corporation tax returns) and                                   
            Schedule K-1 losses allocated to petitioner and Wade from 1976 to                           
            1989 as follows:                                                                            
                              Losses per               K-1 losses were allocated to:                    
                  Year         tax return              Petitioner              Wade                     
                  1976        ($114,476)               ($91,581)               --                       
                  1977        (118,690)                (90,204)                                         
                  1978        (191,025)                (145,179)                                        
                  1979        (734,701)                (587,761)         ($146,940)                     
                  1980        (474,239)                (379,391)               (94,848)                 
                  1981        (347,016)                (312,315)               (34,701)                 
                  1982        (467,196)                (420,476)               (46,720)                 
                  1983        (159,044)                (143,140)               (15,904)                 
                  1984        (942,985)                (942,985)               --                       
                  1985        (642,216)                (642,216)               --                       
                  1986        (322,096)                (322,096)               --                       
                  1987        (122,976)                (122,976)               --                       
                  1988        (256,752)                (256,752)               --                       
                  1989        (133,709)                (133,709)               --                       
                  Total   (5,027,121)           (4,590,781)                                             
                  Losses were allocated between petitioner and Wade on the                              
            basis of the following ownership ratios:                                                    
                  Years                   Petitioner                         Wade                       
                  1976-81                 80%                            20%                            
                  1982-83                 90                             10                             
                  1984-89                 100                            0                              
                  Gary Kane (Kane), a certified public accountant (C.P.A.) for                          
            24 years, prepared tax returns for Bob Wade Ford beginning in                               




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