- 22 -
selective in deciding what part of an expert witness' report we
will accept. See Helvering v. National Grocery Co., 304 U.S.
282, 295 (1938); Silverman v. Commissioner, 538 F.2d 927, 933 (2d
Cir. 1976), affg. T.C. Memo. 1974-285; Parker v. Commissioner, 86
T.C. 547, 561 (1986).
1. Robert F. Reilly
Petitioner presented the report and testimony of Robert F.
Reilly (Mr. Reilly), a compensation expert and a business
valuation expert from the firm of Willamette Management
Associates.
In order to prepare his report, Mr. Reilly reviewed
petitioner's Forms 1120 and financial statements covering periods
from 1986 to 1996. He interviewed Dennis and reviewed various
documents produced by petitioner, respondent, and third parties
to obtain information regarding petitioner and the services
provided by Dennis and Curtis. Mr. Reilly researched the
published proxy data of public companies in 1995 and 1996 in an
effort to find companies comparable to petitioner but found no
specific public companies comparable to petitioner for
compensation purposes. Additionally, he used various surveys to
evaluate the compensation paid to Dennis and Curtis in 1995 and
1996.
Mr. Reilly considered developments of petitioner's business
from 1986 through 1996, including the following:
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011