Gerald E. Johnson and Dorothy Johnson - Page 6

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          reported that Mr. Johnson received $635 of “Wages, salaries,                
          tips, etc.” from “HECTOR PUBLIC SCHOOLS” and $330 of “Wages,                
          salaries, tips, etc.” from “BUFFALO LAKE-HECTOR SCHOOLS”.  In               
          that return, petitioners did not report any wages or other                  
          compensation for services from G.E. Johnson, Inc.  In Schedule E,           
          Supplemental Income and Loss (Schedule E), included as part of              
          petitioners’ 1993 return, petitioners reported $66,715 in rent              
          received from the rental of petitioners’ farmland and personal              
          property (1993 claimed rent), $34,265 in expenses, and $32,450 in           
          total rental real estate income.                                            
               In petitioners’ 1994 return, petitioners reported that Mr.             
          Johnson received $420 of “Wages, salaries, tips, etc.” from “IND.           
          SCHOOL DISTRICT #2159".  In that return, petitioners reported               
          that Ms. Johnson did not receive any wages or other compensation            
          for services from G.E. Johnson, Inc., and that Mr. Johnson                  
          received $1,000 of wages from G.E. Johnson, Inc.  In Schedule E             
          included as part of petitioners’ 1994 return, petitioners re-               
          ported $60,000 in rent received from the rental of petitioners’             
          farmland and personal property (1994 claimed rent), $31,240 in              
          expenses, and $28,760 in total rental real estate income.                   
               In petitioners’ 1995 return, petitioners reported that they            
          received no wages or compensation from any source.  In Schedule E           
          included as part of petitioners’ 1995 return, petitioners re-               
          ported $104,878 in rent received from the rental of petitioners’            






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