Delaware Corp., et al. - Page 28

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                      Type of Expense             Amount                              
                       Mortgage Loan             $18,649                              
                     Real Estate Taxes           2,963                                
                    Electric Utilities           1,771                                
                         Telephone               271                                  
               Mitchums Creek Property                                                
               During 1994, pursuant to the Mitchums Creek contract,                  
          Delaware Corporation paid a total of $17,807 in legal fees (legal           
          fees with respect to the Mitchums Creek property) for legal                 
          services provided to Mr. Barber in connection with the litigation           
          with respect to the Mitchums Creek property.                                
               Child Care                                                             
               During 1994 and 1995, Delaware Corporation paid $7,762 (1994           
          child care expenses) and $3,321 (1995 child care expenses),                 
          respectively, for the care of the children of Mr. Barber’s                  
          daughters.  Delaware Corporation did not treat those payments as            
          taxable fringe benefits.                                                    
          Petitioners’ Respective Federal Income Tax Returns                          
               Each petitioner filed tax returns (returns) for the years in           
          question as described below.                                                
               Delaware Corporation’s Returns                                         
               Delaware Corporation filed Form 1120, U.S. Corporation                 
          Income Tax Return (Form 1120), for its taxable year 1994 (Dela-             
          ware Corporation’s 1994 return).  Failes & Associates, P.C., was            
          the paid preparer (preparer) of that return.  In Delaware Corpo-            
          ration’s 1994 return, Delaware Corporation claimed the following            





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