Richard and Rebecca Adair - Page 4




                                        - 4 -                                         
            Month          Total Deposits Into Checking Account                       
            1993          1994          1995                                          
          January                  -0-        $ 21,346      $ 10,533                  
               February        $ 28,154       34,950        19,056                    
          March        25,824        12,150        23,104                             
          April        37,400        53,022        18,000                             
          May          20,131        44,211        21,372                             
          June          48,870        55,007        61,050                            
          July          34,149        37,700        49,146                            
          August          33,038        17,577           670                          
          September          52,000        53,619        24,465                       
          October          91,020        51,291        51,946                         
          November            72,000        56,580        17,492                      
          December          65,150        40,450        34,500                        
          Total  $507,736      $477,903      $331,334                                 

              On November 16, 1993, for a stated purchase price of                   
          $73,000, petitioners purchased a residence in Clinton, Louisiana.           
          In their purchase of the residence, petitioners paid $49,205 in             
          cash and obtained a mortgage of $25,000.                                    
               On a loan application dated July 2, 1994, Richard Adair                
          indicated that his monthly salary from the roofing business was             
          $3,200.  On a loan application dated March 15, 1995, Richard                
          Adair indicated that his weekly salary from the roofing business            
          was $800.                                                                   
               For 1993, 1994, and 1995, petitioners filed joint Federal              
          income tax returns on which they reported the following amounts:            














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