Manuel and Margaret Karcho - Page 18

                                       - 18 -                                         

          that the Meter Readings Sheets were entirely fictitious,                    
          maintained and deliberately inflated by him in order to mislead             
          prospective purchasers as to the profitability of the arcade.               
          This self-serving testimony is uncorroborated and improbable, and           
          we need not accept it.  Other than his testimony, there is no               
          evidence that Mr. Karcho attempted to sell the arcade, and he               
          still owned it at the time of trial, some 6 years after the last            
          of the years in issue.  Further, examination of the Meter                   
          Readings Sheets shows that they, along with the Reconciliation              
          Sheets that reconciled them with Banner’s bank deposits, were               
          meticulously kept on a daily basis for several years.  We do not            
          believe that petitioners would have gone to these lengths merely            
          to mislead a prospective purchaser.  Petitioners’ contention that           
          the Meter Readings and Reconciliation Sheets were mere                      
          concoctions is not credible.                                                
               As a fallback, petitioners adduced various testimony to the            
          effect that the token machine meters were inaccurate because (i)            
          they frequently malfunctioned, (ii) Mr. Karcho routinely unlocked           
          the machines and manually released tokens to give out at private            
          parties at the arcade, or (iii) Mr. Karcho, when he could not be            
          present to unlock the machines, would give as much as $200 in               
          cash to a Banner employee who would use it to obtain tokens from            
          the machines to give out at private parties.                                

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