- 31 -
For each sale, the schedule allocates the commissions among the
various salespeople, including petitioner. While not clear, it
appears that the schedule is produced from information contained
in EIC's general ledger accounting program. The schedule does
not provide a summary of the total commissions paid to each
individual salesperson, but when added together, all of peti-
tioner's individual commissions for 1989 amounted to $506,986.
Near the bottom of the schedule, there are journal entries
totaling $901,428, the amount actually paid to petitioner. The
journal entries, made at year end, do not reference any particu-
lar sales (as all the other entries do), but instead contain the
notations "all sales override" or "withdraw". No explanation for
these entries was given at trial.
On brief, EIC has not put forth any arguments concerning
compensation paid to petitioner in 1989 other than to assert that
the commissions were reasonable because they related to specific
sales. As previously noted, no evidence was presented at trial,
nor was any argument made on brief, concerning the journal
entries totaling $901,428. Accordingly, based on the entire
record before us, we conclude that $506,986 represents a reason-
able amount of compensation to petitioner for his efforts in
selling land for EIC in 1989.
Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 NextLast modified: May 25, 2011