- 12 -
1989 1,294,4272
1990 1,312,490
1991 1,162,589
1992 1,185,315
Petitioner claimed deductions for officer's compensation in
the amounts of $1,069,001 and $396,698 for the fiscal years 1990
and 1992, respectively.
D. Others Familiar With Petitioner
Christenson, petitioner's accountant, assisted in the
formation of petitioner in 1984, and his accounting firm has
reviewed petitioner's financial statements since 1985.
Approximately 90 percent of Christenson's clients are in the
construction industry.
Christenson considered Ginger the sole marketing person for
petitioner, and he characterized Ginger's sales and marketing
abilities as "amazing". Christenson noticed that Ginger had an
"intuition" in matters, such as profitability, overhead
management, and the need to maintain volume to break even.
Ginger was a rare client in that he invited Christenson to
economic forecast luncheons.
Petitioner's banker, Greg Adamson (Adamson), talked with
petitioner's vendors, customers, and competitors. Such contacts
were common during Adamson's management of a client's portfolio.
Adamson concluded that petitioner had a very solid reputation in
2 We have adjusted the shareholders' equity figure for the
fiscal year ended June 30, 1989, to account for the recording
error entered supra note 1.
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