Mary T. King and Fatai O. King - Page 6




                                         - 6 -                                          
               Gross receipts or sales                       $16,381                    
               Returns and allowances                        --                         
               Costs of goods sold                           11,809                     
               Gross profit                                  4,572                      
               Other income (lottery commissions)            34,857                     
               Gross income                                  39,429                     
               Expenses                                                                 
                 Advertising                   882           --                         
                 Bad debts                     –-            --                         
                 Car and truck expenses        2,132         --                         
                 Insurance                     1,000         --                         
                 Mortgage interest             –-            --                         
                 Legal and professional        800           --                         
                 Repairs and maintenance       7,399         --                         
                 Supplies                      1,684         --                         
                 Taxes and licenses            1,362         --                         
                 Travel                        –-            --                         
                 Meals and entertainment       –-            --                         
                 Utilities                     450           --                         
                 Other expenses                                                         
                 Telephone                     1,382         --                         
                 Independent contractors       4,609         --                         
                 Bank charges                  518           --                         
                 PA lottery shortage           10,561        --                         
                 United News/SEPTA-payment     956           --                         
                 Lottery service charge        936           --                         
                 Cleaning                      520           --                         
                                                              35,191                    
               Net profit                                    4,238                      

                                        OPINION                                         
                  The only issue specifically addressed in petitioners’                 
             posttrial brief is the amount of expenses petitioners are                  
             entitled to deduct in connection with their newsstand                      
             business.  They argue that at trial they proved total                      
             expenses of $39,403.                                                       
                  In their posttrial brief, petitioners do not take                     
             issue with respondent’s determination that the cost of                     
             goods sold for their newsstand business is $11,809.  As                    






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Last modified: May 25, 2011