Henry and Esther Misle - Page 18




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                  1990                                $213,900                                         
                  1991                                182,088                                          
                  1992                                164,447                                          
                  1993                                176,5032                                         
                  1994                                165,003                                          
                  1995                                166,410                                          
                  1996                               167,817                                          
                  1The parties stipulated the amounts that HJA paid under the                          
            covenant not to compete, and those amounts are summarized here.                            
            The amounts listed for 1991, 1995, and 1996 differ from the                                
            amounts shown on the relevant Forms 1099 and in the letters of                             
            explanation.  The amounts shown for 1994, 1995, and 1996 were                              
            paid by HJA and deducted, but respondent has not yet disallowed                            
            those deductions.                                                                          
                  2In 1993, HJA made payments directly to FirsTier and                                 
            Chevrolet in the amount of $165,003.  HJA also made a direct                               
            payment to Henry in the amount of $3,000 and credited it as a                              
            covenant not to compete payment.  In 1993, Chevrolet made an                               
            $8,500 payment on personal insurance for Henry and credited the                            
            payment as a covenant not to compete payment.                                              
            Part of the covenant not to compete payments was applied to the                            
            Chevrolet debt and the FirsTier note, either through the sweep                             
            account or directly, as follows:                                                           
                  Year        Chevrolet debt          FirsTier note           Total                    
                  1990        $38,361                 $31,998           $70,359                        
                  1991        6,394                         7,999             14,393                   
                  1992        76,721                  87,726            164,447                        
                  1993        76,722                  88,281            165,003                        
                  1994        76,721                  88,282            165,003                        
                  1995        76,722                  89,688            166,410                        
                  1996        76,721                  91,096            167,817                        














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