Don C. and Judy Montgomery - Page 6

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             provided by H&B.  H&B's drivers also needed to keep cash on              
             hand in case a tractor-trailer required repairs while away               
             from H&B's shop.                                                         
                  H&B required considerable quantities of cash to pur-                
             chase fuel on behalf of its customers.  Fuel distributors                
             generally do not accept checks in payment for fuel unless                
             the purchaser is well known to the distributor.  Therefore,              
             H&B was required to pay for the fuel it transported with                 
             cash or cashier's checks.  H&B would often use its own                   
             funds to purchase the fuel it transported on behalf of its               
             customers.  H&B would then receive reimbursement when it                 
             delivered the fuel to the customer.                                      
                  On several occasions during the years in issue, H&B                 
             transported fuel for a company called Trans State Pavers,                
             Inc. (Trans State).  Trans State was an unrelated corpora-               
             tion apparently owned by Mr. Bob White.  H&B typically                   
             purchased the fuel that it transported for Trans State from              
             Jordan Distributors.  H&B generally used cashier's checks                
             to pay for the fuel it purchased from Jordan Distributors.               
             Trans State would then pay H&B's driver for the fuel by                  
             giving the driver either cash or a cashier's check at the                
             time the driver delivered the fuel.  The driver would give               
             the cash or cashier's check received from Trans State to                 
             petitioner.  In total, the amount of money petitioner                    





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