John Franklin Foust - Page 11

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          proper schedules.  We reject the notion that petitioner--or any             
          bankrupt--can obtain a discharge of debts owed to unrelated                 
          parties and preserve purported other claims for the benefit of              
          his wife and children by failing to schedule them in the                    
          bankruptcy proceeding.                                                      
               Petitioner contends that the $110,000 he deposited into the            
          bank account of Iowa Prairie was a payment of rents owed by                 
          Cheyenne to Mesa and Teton.  Iowa Prairie did not engage in any             
          activity related to farming or to Cheyenne, Mesa, or Teton.                 
          Petitioner contends that he deposited money in the account of               
          Iowa Prairie for payment of rent Cheyenne owed to Mesa because              
          Mesa did not have its own checking account.  Petitioner provides            
          no such explanation, nor any other explanation, with respect to             
          the rent Cheyenne allegedly owed to Teton.  There is no evidence            
          in the record showing how, if at all, the alleged $110,000 of               
          payments was ultimately received by Mesa and Teton.                         
               For 1989, Mesa and Teton reported rental income in the                 
          amounts of $60,000 and $52,200, respectively, and taxable income            
          of $13,829 and $31,754, respectively.  Mrs. Foust owns the shares           
          of Mesa and is trustee of the shares of Teton beneficially owned            
          by petitioner’s and Mrs. Foust’s children.                                  
               Petitioner has presented neither any evidence that he was              
          personally liable for the debts of Cheyenne nor any evidence of             
          the terms of any arrangements under which Cheyenne would have               

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