Shigenori Kudo and Motomi Kudo, et al. - Page 18

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             For 1990, the Takaos also reported tax-exempt interest income in                                   

             the amount of $5,062.  For 1991, the Takaos also reported                                          

             nontaxable dividend distributions of $7,040.                                                       

                   The Takaos received income or payments from, among other                                     

             things, the following sources in 1982 through 1987:                                                

             1982      1983      1984      1985       1986       1987       Total                               
             Wages         $29,050   $20,000   $19,800    $19,800    $19,675    $16,042                         
             $124,367                                                                                           
             Interest                                                                                           
             income:                                                                                            
             Banks:                                                                                             
             SF Federal                                                                                         
             Savings        353       240     8,573     30,010     35,788     35,192                            
             110,156                                                                                            
             Sumitomo    15,786    17,608    59,244     23,598     15,315      5,717                            
             137,268                                                                                            
             California                                                                                         
             First       32,008    26,085       185        441        252        104                            
             59,075     Total                                                                                   
             interest-                                                                                          
             banks      48,147    43,933    68,002     54,049     51,355     41,013                             
             306,499                                                                                            
             Other                                                                                              
             interest:                                                                                          
             IRS         1,714        18        --        636         --         --                             
             2,368                                                                                              
             John                                                                                               
             Hancock       99       100       101        124        150        180                              
             754                                                                                                
             Edwin                                                                                              
             Nakamura  14,917        --        --         --         --         --                              
             14,917                                                                                             
             Bruce                                                                                              
             Bedig         --    10,716     7,781      7,613      9,696     23,165                              
             58,971                                                                                             
             Norager,                                                                                           
             Inc.          --        --     1,260         --         --         --                              
             1,260                                                                                              
             USA                                                                                                
             Publishing    --        --     4,841         --         --         --                              
             4,841                                                                                              
             Partnership                                                                                        
             /S-Corp.      --        --       --          --         --         11                              
             11                                                                                                 
             Total other                                                                                        
             interest   16,730    10,834    13,983      8,373      9,846     23,356                             
             83,122                                                                                             
             Total                                                                                              
             interest                                                                                           
             income       64,877    54,767    81,985     62,422     61,201     64,369                           
             389,621                                                                                            
             Installment                                                                                        
             sales                                                                                              




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