Choate Construction Co. - Page 19

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            F.2d 176, 179 (10th Cir. 1975), affg. 61 T.C. 564 (1974); Mayson                             
            Manufacturing Co. v. Commissioner, supra.                                                    
                  Respondent concedes that the construction industry is                                  
            generally complex but contends that petitioner had not developed                             
            a niche in medical construction by June 30, 1992.  Respondent's                              
            argument overlooks the fact that petitioner specialized in                                   
            complex projects from its inception, such as hospital operating                              
            rooms, robotics facilities, high-quality glass-making plants, and                            
            "clean" industrial rooms, all built to exacting specifications.                              
            This factor favors petitioner.                                                               
                  4.    General Economic Conditions                                                      
                  General economic conditions may affect a company's                                     
            performance and thus show the extent of the employee's effect on                             
            the company.  Rutter v. Commissioner, 853 F.2d 1267 (5th Cir.                                
            1988); Mayson Manufacturing Co. v. Commissioner, 178 F.2d 115                                
            (6th Cir. 1949).  Respondent concedes that the construction                                  
            industry was weak in 1992.  Despite this, petitioner had become                              
            extremely successful by June 30, 1992.  This factor favors                                   
            petitioner.                                                                                  














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