B & D Foundations, Inc. - Page 57

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          K. Conclusion                                                                
               Petitioner has failed to show it is entitled to a larger                
          compensation deduction under section 162 than respondent allowed             
          in the statutory notice.  We therefore sustain respondent’s                  
          determination disallowing petitioner’s deduction of $353,911 of              
          the salaries paid to Mr. and Mrs. Myers for the year ended July              
          31, 1996.  Rule 142(a); Pepsi-Cola Bottling Co. of Salina, Inc.              
          v. Commissioner, 528 F.2d at 179; Nor-Cal Adjusters v.                       
          Commissioner, 503 F.2d at 361.                                               
                                                   Decision will be entered            
                                              for respondent.                          

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