Michael J. Barkley - Page 3

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                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated.  We incorporate the            
          stipulated facts into our findings by this reference.  Petitioner           
          resided in Manteca, California, when his petition in this case              
          was filed.                                                                  
               Petitioner was married to M. Jeanne Barkley (Mrs. Barkley)             
          at all relevant times.  Petitioner was born on October 27, 1945,            
          and Mrs. Barkley was born on September 17, 1945.  On or about               
          June 4, 1998, Mrs. Barkley was diagnosed with multiple sclerosis,           
          and she has been confined to a wheelchair since the beginning of            
               At all relevant times, petitioner and Mrs. Barkley owned and           
          managed a 43-unit apartment complex, which consisted of five                
          buildings.  Petitioner and Mrs. Barkley resided in one of the               
          apartments and managed the remaining apartments on a daily basis            
          year round.  Mrs. Barkley screened and interviewed applicants,              
          while petitioner prepared vacant units for new tenants, performed           
          general outdoor maintenance, hired independent contractors to               
          address specific maintenance issues, and collected rent payments.           
               In addition to operating the rental property, petitioner               
          worked as a computer programmer for Pacific Bell.  On December              
          30, 1997, petitioner retired from Pacific Bell, after 13 years of           

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