- 14 -
1994
Debits Credits
Schedule C gross receipts $112,610 --
Cost of goods sold -- $64,514
Schedule C expenses -- 48,813
Less standard mileage rate -- -14,790
Rental income 5,318 --
Rental expenses -- 6,330
Bank account balance 8,873 17,265
Insurance proceeds 4,300 --
Principal payments on
rental property -- 2,894
Personal living expenses -- 22,669
Truck expenses –- 9,788
Totals 131,101 157,483
Less total debits -131,101
Understatement 26,382
1995
Debits Credit
Schedule C gross receipts $152,870 --
Cost of goods sold -- $91,607
Schedule C expenses -- 93,953
Less standard mileage rate -- -22,500
Rental income 7,397 --
Rental expenses -- 10,239
Bank account balance 17,265 87
Insurance proceeds 4,700 --
Purchase of Massachusetts
Street property -- 11,090
Checks to Ms. Owens
deducted as Schedule C
cost of labor -- 1,900
Personal living expenses -- 14,047
Truck expenses –- 12,151
Totals 182,232 212,574
Less total debits -182,232
Understatement -- 30,342
In the notice, respondent determined to increase petition-
ers’ Schedule C gross receipts for each of the years 1993, 1994,
and 1995 in the amounts of $13,525, $26,382, and $30,342, respec-
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