Timothy Thomas and Janice Kathleen Kuberski - Page 4




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               The business plan that petitioner wrote in 1987 for Sun                
          State Farm identified key advisers to the business, such as a               
          veterinarian, an accountant, a nutritionist, and other experts in           
          the thoroughbred horse industry.  The 1987 plan identified farm             
          assets and their potential appreciation and outlined expenses               
          such as wages, utilities, boarding fees, race training fees, and            
          sale preparation fees.  The business plan included a cashflow               
          projection, an income and loss statement, a description of                  
          additional revenue sources, and a listing of potential capital              
          improvements for the farm.  Petitioner projected annual expenses            
          of $93,100 and annual income of $102,600.  The plan also                    
          projected the acquisition of a stallion to proceed with the                 
          breeding operation.  The plan included an economic analysis                 
          compiled by the University of Arizona, which studied the impact             
          of the thoroughbred horse breeding industry on the Arizona                  
          economy.                                                                    
               The 1995 supplement gave a general description of the                  
          operations of Caduceus Thoroughbreds but did not include any                
          financial data or income projections other than a projected cost            
          of between $7,000 and $10,000 to prepare a horse for the                    
          racetrack.  The new plan emphasized a change in focus from                  
          breeding to racing.  The plan also cautioned that, despite                  
          increasing purses, the value of Arizona thoroughbreds had not               
          improved commensurately, and owners were still buying expensive             






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