Ronald D. Ciaravella - Page 10

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               6053                          (a) Race Car                             
                                             (b) GTE - Yellow Pages                   
                                             (c) Ac-U-Kwik-Kalatee                    
               6055                          (a) Trad-A-Plane                         
                                             (b) MAB/MBC                              
                                             (c) Aviator's Hotline                    
                                             (d) Maxwell                              
               6056                          (a) Aviation Directory                   
                                             (b) Select Directory                     
                                             (c) Ac-U-Kwik-Kalatee                    
                                             (d) Air Charter                          
                                             (e) Aopa's USA                           
               The following table sets forth Dolphin's expenditures in               
          connection with each of the advertising accounts listed above:              


          Account          FYE 1991      FYE 1992       FYE 1993                      
          6051           $15,439        $3,736.00      $3,315.53                      
          6052           3,324    1,298.83             113.36                         
          6053           67,877         47,456.63      83,642.95                      
          6055           12,689         17,641.26      266.58                         
          6056             15,292       18,277.34      4,305.99                       
          Total          114,621        88,410.06      91,644.41                      

               Respondent disallowed deductions for Dolphin's advertising             
          expenses in the 6053 account, in the following amounts:                     
          (1) $56,250 for fiscal year ending August 31, 1991; (2) $43,321             
          for fiscal year ending August 31, 1992; and (3) $80,0004 for                
          fiscal year ending August 31, 1993.  All of respondent's                    
          disallowances related to the race car expenditures.                         


               4 Originally, respondent disallowed the entire $91,644, but            
          later conceded that $11,644, the portion of advertising expenses            
          not related to the race car, was deductible.                                



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