T.C. Memo. 1998-115                                  
                               UNITED STATES TAX COURT                                
                  EDWARD E. AND CONSTANCE M. THORPE, Petitioners v.                   
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                     EDWARD E. THORPE AND COMPANY, Petitioner v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
               Docket Nos. 23895-95, 23900-95.    Filed March 23, 1998.               
               Cheryl Frank and Chaya Kundra, for petitioners.                        
               Alan R. Peregoy, for respondent.                                       
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               RUWE, Judge:  Respondent determined deficiencies in                    
          petitioners' Federal income taxes and accuracy-related penalties            
          in these consolidated cases as follows:                                     
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