Wagner Construction, Inc. - Page 29




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          $191,652 and $315,500 for 1996.                                             
               We do not accept certain aspects of Mr. Reilly's analysis.             
          Mr. Reilly's aggregation approach would result in compensation              
          equal to that of four full-time corporate executives.  We reject            
          Mr. Reilly's suggestion that Dennis performed the work of four              
          full-time executives serving as petitioner's president and CEO,             
          chief financial officer, vice president of marketing and sales,             
          and COO.  Although Dennis may have performed some of the duties             
          and functions of four such executives, he did not perform work              
          equal to the full-time services of four such executives.                    
          Although the more roles or functions an employee performs the               
          more valuable his services are likely to be, an employee who                
          performs four jobs, each on a part-time basis, is not necessarily           
          worth as much to a company as four employees each working full              
          time at one of those jobs.                                                  
               Dennis testified that he worked 80 to 90 hours per week.               
          Four full-time employees would have worked at least 160 combined            
          hours each week.  It is therefore inappropriate to aggregate the            
          normal full-time salary for four jobs to compute the reasonable             
          compensation of the employee who fills all four of them.  See               
          Pepsi-Cola Bottling Co. v. Commissioner, 61 T.C. 564, 569 (1974),           
          affd. 528 F.2d 176 (10th Cir. 1975); Richlands Med. Association             
          v. Commissioner, T.C. Memo. 1990-660, affd. without published               
          opinion 953 F.2d 639 (4th Cir. 1992); Ken Miller Supply, Inc. v.            
          Commissioner, T.C. Memo. 1978-228.                                          




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