- 54 -
supra; see also Rutter v. Commissioner, 853 F.2d 1267 (5th Cir.
1988), affg. T.C. Memo. 1986-407; Mayson Manufacturing Co. v.
Commissioner, supra at 121. Dennis and Curtis worked long hours,
6 or 7 days a week. They were petitioner's only officers.
Dennis performed all the duties of a CEO, and Curtis performed
all duties of a COO. We view Dennis and Curtis as indispensable
to petitioner's various business activities, including highway
and heavy construction, logging, construction waste storage, and
sand and gravel operations. Petitioner's growth and prosperity
are due directly to the skills, dedication, and efforts of Dennis
and Curtis.
We find the nature and scope of the work performed by Dennis
and Curtis warrant high compensation.
3. Size and Complexity of Business
We consider the size and complexity of a taxpayer's business
in deciding whether compensation is reasonable. See Owensby &
Kritikos, Inc. v. Commissioner, 819 F.2d at 1322-1323; Mayson
Manufacturing Co. v. Commissioner, supra. A company's size is
measured by its sales, net income, gross receipts, or capital
value. See E. Wagner & Son, Inc. v. Commissioner, 93 F.2d 816,
819 (9th Cir. 1937).
Petitioner's business is more complex than that of many
highway and heavy construction companies; petitioner's business
also includes logging, construction, waste storage, and sand and
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