Friscia Construction, Incorporated, et al. - Page 11




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               7.   The 004 Account                                                   
               The Friscias deposited $15,000 in a bank account numbered              
          252981004 (the 004 account) in 1994.  Respondent concedes that              
          these were proceeds from a nontaxable loan.                                 
              8.   Summary of 1994 Income                                            
               In sum, the deposits into the Friscias’ seven bank accounts            
          in 1994 reflect the following amounts of income taxable to the              
          Friscias in 1994:                                                           
                              Account        Income                                   
                             591            $14,175                                  
                              649            9,676                                    
                              533            33,645                                   
                              864            167                                      
                              898            1,135                                    
                              522            24,178                                   
                              004       - 0 -                                         
                                        -------                                       
                              Total       82,976                                      
         The Friscias reported gross receipts of $54,760 in 1994, as                  
         follows:                                                                     
         Wages less withholding1                       $8,630                         
              Interest                           201                                  
              Schedule C receipts                      4,825                          
              Other income                       3,700                                
              Schedule D sale                          405                            
              Rental income                            22,000                         
         Mik Mic proceeds2                             15,000                         
                                  ------                                              
              Total                    54,761                                         
              1The amount withheld is netted from wages because these                 
         amounts would not have been deposited into the Friscias’ accounts.           
              2Respondent concedes that the Friscias reported $15,000                 
         in proceeds from Michael Friscia’s construction business on the              
         Mik Mic income tax returns in 1994.                                          





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