Robert G. Bacon and Barbara Bacon - Page 33




                                       - 33 -                                         
                                     APPENDIX C                                       
          Property                 Payments Terms and Payments Made                   
          1.  211 E. 17th Street, The contract sales price was $412,000               
          Long Beach Township,     and the gross amount due from Mrs.                 
          New Jersey --            Bacon was $415,167.  To finance the                
          Purchased 2/23/88        purchase, Mrs. Bacon paid $3,167 in                
                                   cash, assumed a $287,0691 first mortgage           
                                   on the property, and secured a $124,931            
                                   second mortgage on the property.  During           
                                   1988, petitioners paid down the $287,070           
                                   first mortgage by $283,310.  The                   
                                   payments were made over an 8-month                 
                                   period of time, consisted of five                  
                                   payments,2 all drawn on petitioners’               
                                   personal bank accounts.  The $124,931              
                                   second mortgage required a single                  
                                   payment of $124,931 in 1 year.3                    
          2.  Lots 7, 8, 13, and   Mrs. Bacon put down 10 percent or                  
          14, Block 304, Marco     $58,500 as a deposit, executed a                   
          Beach Unit 9 located     $300,000 promissory note secured by a              
          in Collier County,       mortgage on the property, and paid the             
          Florida. --              balance on or before the closing.4                 
          Purchased 3/4/88         The $300,000 purchase money note and               
                                   mortgage required 36 monthly payments of           
                                   $2,518 and a balloon payment of $288,988           
                                   at the end of the 36 months.  Payments             
                                   on the purchase money note and mortgage            
                                   were made in accordance with the terms.            
               1 The settlement statement indicates that the existing loan assumed is 
          $287,069, while the stipulation indicates that the existing loan assumed was
          $287.070 (after rounding).  We assume that the stipulation contained a      
          typographical error.                                                        
               2 From petitioners’ First Fidelity account, No. 0186161, a payment of  
          $76,509 was made on Apr. 1, 1988; a $94,950 payment on May 1, 1988; and a   
          $40,035 payment on June 1, 1988.  From petitioners’ Security Savings & Loan 
          account, No. 238351019, a payment of $64,311 was made on Nov. 27, 1988, and a
          $7,504 payment was made on Nov. 30, 1988.                                   
               3 The payment was satisfied on Feb. 21, 1989, in part by a $60,931     
          cashier’s check drawn on petitioners’ First Fidelity account and $64,000 in 
          funds withdrawn from Radtam’s savings account at Chemical bank, account No. 
          600-871255.                                                                 
               4 A portion of the payments, $158,375, was financed from $338,097 in   
          loan proceeds secured by property located at Block D-32, Lot 8, 216 E. 18th 
          Street, North Beach Haven, NJ.  The remaining $179,722 of the loan proceeds 
          was deposited in Radtam’s account No. 23-835065-6.                          







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