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$2,169,125, and $1,884,853 and 93, 91, and 103 percent of net
taxable income of $923,690, $662,974, and $688,801 (before
deducting officer's compensation at issue) for 1989, 1990, and
1991, respectively); Acme Constr. Co. v. Commissioner, T.C. Memo.
1995-6 (reasonable compensation was 10.2 percent of gross income
of $4,330,871 and 73.23 percent of net taxable income of $603,771
(before deduction of compensation at issue in 1990); BOCA
Constr., Inc. v. Commissioner, T.C. Memo. 1995-5 (reasonable
compensation was 27.7 and 31.9 percent of gross receipts of
$2,488,322 and $2,558,903 for 1989 and 1990, respectively, and
approximately 80 percent of net income of $847,328 and $1,055,086
(not including the compensation at issue in each year).
In these cases cited by petitioner, this Court found that
the compensation paid by the taxpayer was reasonable even though
it was a large portion of the taxpayer's gross receipts and net
income. However, petitioner fails to recognize that unlike the
instant case where the compensation being challenged was paid to
only one employee, Rogers, in Pulsar Components Intl., Inc., Mad
Auto Wrecking, Inc., and BOCA Constr., Inc. the compensation at
issue was paid to two officer/shareholders. Thus, the facts of
those cases and the case at hand are clearly distinguishable.
Petitioner contends that a portion of the compensation paid
Rogers in 1990 is for services he provided petitioner in prior
years. Similarly, in Acme Constr. Co., the compensation was paid
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