Thomas E. and Susan L. Truskowsky - Page 4

                                        - 3 -                                         
          Mr. Truskowsky commuted to central New Jersey from Trappe,                  
          Pennsylvania, every day.                                                    
          Petitioners' Cattle Breeding Activity                                       
               Petitioners' cattle breeding activity began in 1994, when              
          they bought their first cows.  They were "Limousin" cattle, a               
          beef breed from France.  Petitioners decided to go into the                 
          Limousin cattle business after considering other breeds of                  
          cattle.                                                                     
               The Farm                                                               
               Petitioners needed a place to board their cattle as they did           
          not own a farm during the years in issue.  Petitioners learned              
          about K-C Delight Farm (K-C) from a local newspaper that                    
          advertises to farmers.  They visited K-C and other farms before             
          choosing K-C.  Chester Deitch, who operated K-C, did not own the            
          farm, but rented it.  He operated K-C primarily as a "multiple              
          acreage" general and dairy farm.  Near his home and included in             
          Mr. Deitch's farmland rental was a parcel of land where he                  
          boarded petitioners' cattle.  Mr. Deitch maintained approximately           
          two dozen cattle of his own on the same parcel where he boarded             
          petitioners' cattle.  Mr. Deitch maintained his and petitioners'            
          animals in different paddocks.  Petitioners' animals had their              
          own shelter and automatic watering systems.                                 
               Mr. Deitch did not live on the parcel of property where he             
          kept petitioners' cattle, at 117 Simmons Road.  There were,                 






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