Estate of James Barudin, Deceased, Muriel B. Clarke, Executrix - Page 19

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          of the FC Partnership, and respondent's expert concludes that the           
          appropriate minority interest discount of only 15 percent                   
          applies.                                                                    
               With respect to the discount for lack of marketability,                
          respondent's expert also relies on various market studies which             
          indicate appropriate discounts of between 25.8 and 45 percent for           
          lack of marketability.  Because the FC Partnership appeared to              
          have been well managed, made regular cash distributions, and had            
          quality tenants, respondent's expert concludes that a 15-percent            
          discount for lack of marketability is appropriate.  Combining the           
          two discounts, respondent's expert uses a 28-percent discount to            
          calculate the December 31, 1989, fair market value of decedent's            
          ownership unit.  Applying this 28-percent discount to the                   
          $825,307 per-unit liquidation value that respondent's expert                
          calculates for each ownership unit, respondent's expert concludes           
          that the date-of-death value of decedent's ownership unit equals            
          $594,221.                                                                   
               In our opinion, with regard to the appropriate minority                
          interest discount to apply, respondent's expert erroneously                 
          assumes that an owner of each general partnership unit could                
          participate meaningfully in management of the FC Partnership.               
          Since Mr. Silver controlled a majority of the FC Partnership                
          units, he had practical control over management and operation of            
          the FC Partnership, and holders of minority interests in the FC             
          Partnership would have only limited veto power over the few                 




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