Estate of James J. Renier, Deceased, Kent L. Renier and Dubuque Bank & Trust Company, Co-Executors - Page 16

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          accounts for Renier’s related-party excess compensation.  Mr.               
          Kramer’s method was unsupported by any objective criteria; his              
          report’s assertion that there was a duplication of effort equal             
          to 15 percent of the amounts paid to related-party management               
          appears to be no more than a conclusory guess.  The estate cites            
          no data to support the claim that the sales, management, and                
          bookkeeping functions being performed by related parties were               
          actually worth $120,000 per year in the Dubuque area.  In                   
          addition, the estate concedes on brief that in Renier’s fiscal              
          year ended June 30, 1990, Mark Renier, decedent’s other son, was            
          paid $100,000 in excess compensation.  Mr. Kramer’s report,                 
          however, fails to account for this figure.  For these reasons, we           
          find more reliable Mr. Sliwoski’s approach based on actual data             
          from a Dubuque area wage survey.                                            
               While we find satisfactory Mr. Sliwoski’s basic methodology            
          of attempting to estimate the “market” replacement cost of the              
          necessary services that were provided by related parties, and               
          treating the excess of the amounts actually paid over their                 
          market value as a normalizing add-back to income, we nevertheless           
          believe that Mr. Sliwoski’s estimate of the replacement cost of             
          the sales and management services provided by related parties               
          significantly understates the services’ value.  Mr. Sliwoski                
          assumed that the sales and management functions being performed             
          by Kent could be accomplished in a 40-hour work week.  Kent                 
          testified that he worked in excess of 70 hours per week.  While             

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