John L. Ginger Masonry, Inc. - Page 11

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               Petitioner's financial statements reflect the following:               
          FYE                      Gross          Net       Retained                  
          June 30 Revenue          Profit       Income      Earnings                  
          1985     $3,727,655      1,098,482    256,644     256,644                   
          1986      4,817,376      1,037,224     66,943     323,587                   
          1987      5,427,047      1,428,669    230,224     553,811                   
          1988      5,162,114      1,247,098    245,153     798,964                   
          1989      8,607,196      2,293,224    549,984    1,279,4271                 
          1990      8,937,324      2,063,142     18,063    1,297,490                  
          1991      5,012,347      929,136   (149,901)   1,147,589                    
          1992      6,995,774      1,429,611     22,726    1,170,315                  
          Petitioner has never paid dividends.  Ginger's total compensation           
          was as follows:                                                             


          FYE            Total          Disallowed by       Allowed by                
          June 30        Compensation   Respondent          Respondent                
          1985      $249,145              --                 --                       
          1986           383,290              --                 --                   
          1987           390,724              --                 --                   
          1988           280,000              --                 --                   
          1989           516,371              --                 --                   
          1990        1,069,001         818,756            250,245                    
          1991           132,000              --            132,000                   
          1992           396,698           186,825            209,873                 
          Petitioner's shareholders' equity, as contained in petitioner's             
          financial statements, is as follows:                                        
                         FYE            Shareholders'                                 
          June 30                Equity                                               
                         1985                $271,644                                 
                         1986                338,587                                  
                         1987                568,811                                  
                         1988                813,964                                  


               1 Due to an error in recording, the June 30, 1989, retained            
          earnings figure was restated on June 30, 1990, from $1,348,948 to           
          $1,279,427.                                                                 




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