Dennis C. Gandy - Page 34

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          and that she would be reporting the interest income from those              
          notes.  Davidson met with Mr. Gandy to review the completed                 
          return.  Thereafter, Davidson learned that the Gandys' divorce              
          had occurred during 1988 and, in late 1988, he sent to Mr. Gandy            
          a letter indicating that the 1988 tax return should be amended to           
          include the interest earned on the mortgage notes while they were           
          community property.  An amended 1988 tax return was not filed for           
          Mr. Gandy.                                                                  
               Mr. Gandy's 1989 tax return was prepared by Gary W. Camp               
          (Camp), a certified public accountant.  Camp prepared the 1989              
          tax return from information supplied to him by Mr. Gandy:  a                
          balance sheet, profit and loss statement, fuel costs, and a list            
          of equipment that was purchased and traded.  This information               
          provided by Mr. Gandy was used by Camp to compute the gross                 
          receipts of the nursery for 1989.  Camp did not have any bank               
          statements or ledgers.                                                      
               The following table summarizes pertinent items from the tax            
          returns for the years in issue:                                             

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