Eugene D. Lanier, Inc. - Page 1

                                  T.C. Memo. 1998-7                                   


                               UNITED STATES TAX COURT                                

                       EUGENE D. LANIER, INC., Petitioners v.                         
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      
                    EUGENE D. AND ERIE P. LANIER, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket Nos. 9146-93, 9171-93.    Filed January 7, 1998.                

               Elmo J. Laborde, Jr., for petitioners.                                 
               Emile L. Hebert III and Linda J. Bourquin, for respondent.             


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               WRIGHT, Judge:  In these consolidated cases, respondent                
          determined deficiencies in, and additions to, the Federal income            
          taxes of petitioners Eugene D. Lanier, Inc. (the Corporation) and           
          Eugene D. and Erie P. Lanier (the Laniers) for taxable year 1987            
          in the following amounts:                                                   







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