Wy'East Color, Inc. An Oregon Corporation - Page 26

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          Constr. Co. v. Commissioner, supra, and Comtec Sys., Inc. v.                
          Commissioner, supra, also provided evidence comparing the                   
          compensation at issue with that paid by similar companies.  There           
          is no such evidence here.  In BOCA Constr., Inc. v. Commissioner,           
          supra, and RAPCO, Inc., v. Commissioner, supra, the taxpayer                
          applied a longstanding bonus formula or compensation plan.  There           
          is no similar formula or plan in this case.  In Comtec Sys., Inc.           
          v. Commissioner, supra, the taxpayer provided evidence which                
          compared the compensation at issue with compensation in a similar           
          company.  There is no similar evidence here.                                
               Petitioner contends that this case is similar to Mortex                
          Manufacturing Co. v. Commissioner, T.C. Memo. 1994-110.  In that            
          case, we found that it was important that the company had a                 
          longstanding compensation plan for its officer-stockholders that            
          was well within industry norms.  Petitioner did not make this               
          showing.  The taxpayer in Mortex provided evidence comparing the            
          compensation at issue to various published surveys.  Petitioner             
          has submitted no such evidence.                                             
               Petitioner cites Universal Manufacturing Co. v.                        
          Commissioner, T.C. Memo. 1994-367, to show that Mr. Cummings'               
          compensation from Dacor and Kadac was reasonable because it was             
          2.35 percent of net sales.  Universal Manufacturing Co. v.                  
          Commissioner, supra, is similar to BOCA Constr., Inc. v.                    







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