
    Appeal of HERON METAL BED CO.
    Docket No. 3236.
    Submitted June 18, 1925.
    Decided July 11, 1925.
    
      John S. Fletcher, Esq., for the taxpayer.
    
      B. P. Smith, Esq., for the Commissioner.
    
      Before SteRnhagen, LaNSdoN, and Love.
   The taxpayer appeals from a determination of a deficiency in income and profits tax of $4,MO for the calendar year 1919, resulting from the disallowance of a deduction for salary of its president.

BINDINGS OE PACT.

During the calendar year 1919 the taxpayer paid its president a salary of $9,000. The president performed substantial service during that year, the directors considered that such services were worth $9,000 in that year, and by a resolution duly adopted such salary was authorized. The Commissioner disallowed the deduction. The salary was reasonable.

DECISION.

The deficiency determined by the Commissioner is disallowed.  