Jerry S. Payne - Page 9

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          Withdrawals of Cash From Cash Registers of 2618 Inc                         
               During 1987 and 1988, respectively, petitioner withdrew a total        
          of $6,721 and $4,699 in cash from the cash registers at the Club and        
          used this cash for personal purposes.                                       

          Payne & Potter                                                              
               In 1987, petitioner received $12,826 relating to his ownership         
          of 50 percent of the stock of a real estate development corporation         
          doing business under the name of Payne & Potter.  This $12,826              
          relates to the disposition of certain real estate held by Payne &           
          Potter.                                                                     
               During the years in issue, Payne & Potter did not maintain             
          adequate books and records.  By the end of 1987, Payne & Potter was         
          insolvent.                                                                  

          Legal Fees From Miscellaneous Clients                                       
               In 1987 and 1988, petitioner received $65,498 and $33,376,             
          respectively, for legal services he provided to clients other than          
          2618 Inc and the Club.                                                      

          Miscellaneous Bank Deposits and Checks Not Deposited                        
               For 1987 and 1988, petitioner received $205,262 and $198,522,          
          respectively, in miscellaneous additional funds that were deposited         
          into his bank accounts.  For 1987, petitioner also received an              
          additional $5,426 in checks that were not deposited into his bank           
          accounts.                                                                   





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