Herschel H. and Roberta S. Hoopengarner - Page 9

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                    1989           -0-                                                
                    1990           -820,198                                           
                    1991           -796,911                                           
                    1992           -787,394                                           
                    1993           -724,043                                           
                    1994           -678,567                                           
                    1995           -627,612                                           
                    1996           -575,790                                           
                    1997           -438,628                                           
                    1998           -365,005                                           
                    1999           -285,208                                           
                    1 For 1987, the parties provided no information as                
               to whether or not a return was filed or as to the                      
               amount of taxable income or adjusted gross income.                     
          J.   Respondent’s Adjustments                                               
               On May 15, 2000, respondent issued a timely notice of                  
          deficiency for 1994, 1995, and 1996.  On April 27, 2001,                    
          respondent issued a timely notice of deficiency for 1997, 1998,             
          and 1999.  Respondent made the following adjustments and                    
          determinations:                                                             
                    NOL                 Schedule C                                    
                    Carryover      Expenses                                           
          Year      Disallowed      Disallowed      Other Adjustments1                
          1994           $724,043       $9,950         -$298                          
          1995           678,567        6,100          -431                           
          1996           634,162        -0-                 -0-                       
          1997           580,720        -0-                 -0-                       
          1998           445,528        -0-            8,391                          
          1999           364,635        -0-            1,909                          
                    1  The Other Adjustments include items such as “SE                
               AGI Adjustment”, “Social Security/RRB”, and “Itemized                  
               Deductions.”                                                           










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