Ragnhild A. Westby - Page 34

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          Year                                   Depreciation expense                 
          acq.      Asset          Cost      1987    1988   1989    1990              
          1987      Furniture                                                         
                    & fixtures   $10,543    $2,109  $3,374 $2,024  $1,215             
                    Computer       2,186       437     700    420     252             
          1988      Furniture                                                         
                    & fixtures     2,630          12,630                              
                    Computer       5,270             15,270                           
                    Total depreciation                                                
                    and sec. 179 exp.      2,546  11,974  2,444  1,467                
               1These amounts were claimed as sec. 179 expenses.                      
          The detail in Mr. Aunan’s workpapers shows that, during 1987,               
          petitioner purchased furniture costing $3,003 and a copier                  
          costing $3,069 and made leasehold improvements costing $4,471.              
          The total of these three items is $10,543, the amount used by Mr.           
          Aunan in calculating the depreciation expense attributable to               
          furniture and fixtures for the years at issue.  The detail also             
          shows that, during 1987, petitioner purchased a computer costing            
          $2,186, a figure that ties into Mr. Aunan’s depreciation                    
          schedule.                                                                   
               Documents introduced into evidence at trial establish the              
          following:                                                                  
               (1) Petitioner purchased a computer for $2,186 during 1987             
          (Ex. 38-R, line 211).15                                                     

               15Ordinarily, we do not include citations to the record in             
          our opinions.  In this case, however, references to line items in           
                                                             (continued...)           





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