Edward C. Tietig - Page 56

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                                     APPENDIX D                                       
               Below we compare the notice of deficiency adjustments to               
          Farm & Grove’s 1990 income with the final treatment per the                 
          concessions and our findings.                                               
                                                  TYE       Final                     
                                             12/31/90    Treatment                    
          Ordinary income per return as filed     ($82,892)                           
          Increases (Decreases) to income:                                            
          a.  1989 installment sales              168,587   1168,587                  
          b.  Current years installment sales     50,987    250,987                   
          c.  Gain on foreclosures                1,755     31,755                    
          d.  K-38 lot sales                      215,922   4215,922                  
          e.  Less amounts reported               (249,723)   (249,723)               

          Ordinary income as corrected             104,636    104,636                 
          Your distributive share of                                                  
          ordinary income                         104,636    104,636                  
                                                                                     
          Less:  Ordinary income reported on                                          
               your return                        (82,892)     (82,892)               
          Increase (Decrease) in taxable income   187,528     187,528                 
                                                                                     
               1Conceded.                                                             
               2Conceded.                                                             
               3Considered conceded per Rule 34(b)(4).                                
               4Respondent’s determination sustained.                                 

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