Summit Sheet Metal Co. - Page 5

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               Petitioner has used the accrual method of accounting since             
          1964.  Petitioner paid administrative salaries of $192,079 and              
          cost of labor of $2,901,375 during the year in issue.                       
          B.   Petitioner's Shareholders and Officers                                 
               1.  Milton J. Chasin                                                   
               Milton J. Chasin has a bachelor of science degree in                   
          accounting.  He was licensed as a public accountant in 1948 or              
          1949.  He was employed as an auditor with the California State              
          Board of Equalization in the late 1940's.                                   
               Chasin cofounded petitioner in 1960 with Morley Weis (not              
          otherwise described in the record) and Donald Hanson.  Gale                 
          Searing became a one-third shareholder of petitioner in 1964                
          after Weis died.  Chasin was responsible for the administration             
          of petitioner.  He established and was responsible for                      
          petitioner's books and records.  He kept accurate records for               
          petitioner from 1960 through the year in issue.  He negotiated              
          loans and bought material and equipment for petitioner.  He                 
          negotiated a line of credit for petitioner with Metropolitan Bank           
          in the year in issue.  Chasin always had an assistant to help him           
          with the administrative duties.                                             












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