Tommy Owens, Jr. and Dawn R. Owens - Page 13

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          examination of each such joint return.  In applying the source              
          and applications of fund method for each of the years at issue,             
          respondent prepared a so-called Cash T (Cash T) for each of those           
          years, which reflected debits and credits for various items that            
          respondent derived from one or more of the foregoing sources.               
          Set forth below is the Cash T that respondent prepared for each             
          of the years at issue:                                                      
                                        1993                                          
                                                Debits        Credits                 
                Schedule C gross receipts      $66,779          --                    
                Cost of goods sold                --          $24,121                 
                Schedule C expenses               --         46,510                   
                Less standard mileage rate        --         -16,800                  
                Rental income                   4,000           --                    
                Rental expenses                   --         6,668                    
                Bank account balance            6             8,873                   
                Personal living expenses          --          8,338                   
                Checks to Ms. Owens                                                   
                deducted as Schedule C                                                
                cost of labor                     --       1,700                      
                Truck expenses                  –-            4,900                   
                Totals                         70,785      84,310                     
                Less total debits                          -70,785                    
                Understatement                             13,525                     

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