Task: songer_weightev

What follows is an opinion from a United States Court of Appeals. You will be asked a question pertaining to issues that may appear in any civil law cases including civil government, civil private, and diversity cases. The issue is: "Did the factual interpretation by the court or its conclusions (e.g., regarding the weight of evidence or the sufficiency of evidence) favor the appellant?" This includes discussions of whether the litigant met the burden of proof. Answer the question based on the directionality of the appeals court decision. If the court discussed the issue in its opinion and answered the related question in the affirmative, answer "Yes". If the issue was discussed and the opinion answered the question negatively, answer "No". If the opinion considered the question but gave a mixed answer, supporting the respondent in part and supporting the appellant in part, answer "Mixed answer". If the opinion does not discuss the issue, or notes that a particular issue was raised by one of the litigants but the court dismissed the issue as frivolous or trivial or not worthy of discussion for some other reason, answer "Issue not discussed". If the opinion considered the question but gave a "mixed" answer, supporting the respondent in part and supporting the appellant in part (or if two issues treated separately by the court both fell within the area covered by one question and the court answered one question affirmatively and one negatively), answer "Mixed answer". If the opinion either did not consider or discuss the issue at all or if the opinion indicates that this issue was not worthy of consideration by the court of appeals even though it was discussed by the lower court or was raised in one of the briefs, answer "Issue not discussed".

PER CURIAM.
In this appeal the taxpayer (Savko Brothers Company) seeks to reverse a tax deficiency judgment of $4,096.79. The Commissioner had previously found (and had contended before the Tax Court for) a deficiency of $36,496.51. The dispute turns upon whether or not salaries. and bonuses paid to the corporation’s two principal officers and stockholders were or were not “reasonable” within the meaning of Internal Revenue Code of 1954, § 162(a) (l).
Two brothers, Nick and Charley Savko, were recipients of the salaries and bonuses and paid personal income taxes thereon. They had organized the corporation late in 1955 to engage in the building, construction and excavating business in which both had considerable prior experience. It is undisputed that through their joint efforts in estimating jobs, in getting business, in laying out work and supervising it, they were personally responsible for the considerable success of the company.
The financial picture of the taxpayer company is shown in these figures:
Year Ending June 30 Gross Receipts Net Income (Loss) Total Compensation to Savkos
1957 $461,666.10 $(11,273.85) $62,500
1958 555,672.88 26,205.24 49.000
1959 775,916.01 38,683.27 52.000
The Commissioner’s and the Tax compensation was as follows: Court’s treatment of the Savkos’ total
Commissioner Tax Court
Taxable Year Ended June 30 Compensation Allowed Tax Deficiency Compensation Allowed Tax Deficiency
1957 $26,000.00 $ 6,873.11 $49,000.00 $ -0-
1958 26,000.00 16,103.40 49.000. 00 4,096.79
1959 26,000.00 13,520.00 52.000. 00 -0-
The Tax Court on this record held amounts paid each of the Savko brothers in 1957 “was unreasonable as compensation for services actually rendered * * * to the extent of $6,750 each.” It thus appears that the Tax Court allowed $24,500 as “reasonable” compensation to each officer for the first year of operation of the company at a time when the company showed a loss. This was the same compensation which the company paid to each brother in the following year — the first year when the company showed a profit.
Under this record we cannot say that the Tax Court’s determination was “clearly erroneous.” Rule 52(a) Fed. R.Civ.P.; Commissioner of Internal Revenue v. Duberstein, 363 U.S. 278, 80 S.Ct. 1190, 4 L.Ed.2d 1218 (1960) v. United States v. United States Gypsum Co., 333 U.S. 364, 68 S.Ct. 525, 92 L.Ed. 746 (1948).
Affirmed.
. § 162. Trade or business expenses.
“(a) In General. — There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including — •
“(1) a reasonable allowance for salaries or other compensation for personal services actually rendered; * * * ” 26 U.S.C.1958 ed., Sec. 162 (a) (1).

Question: Did the factual interpretation by the court or its conclusions (e.g., regarding the weight of evidence or the sufficiency of evidence) favor the appellant?
A. No
B. Yes
C. Mixed answer
D. Issue not discussed
Answer:

Answer: A