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risk for petitioner; he simply assumed risk to buy stock for
himself.
This factor favors petitioner.
13. Respondent's Other Contentions
Respondent cites Guy Schoenecker, Inc. v. Commissioner, T.C.
Memo. 1995-539. In that case, we were not convinced that the
taxpayer's CEO was exceptional or irreplaceable because an
assistant or the CEO's son could do the CEO's job. The
taxpayer's growth was similar to that of its competitors. The
taxpayer had been in business for 10 years before the years in
issue and had not had the rapid growth and success that
petitioner did. Choate's performance was exceptional. There is
no evidence that anyone else could have done what Choate did for
petitioner.
In Tricon Metals & Servs., Inc. v. Commissioner, T.C. Memo.
1997-360 (decided after the parties filed their briefs in this
case), we found that the compensation paid by the taxpayer
exceeded a reasonable amount. However, in Tricon Metals, unlike
this case, the taxpayer did not show that its operations were
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