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effective date of the amendment to section 1060(a) upon which
respondent apparently relies.10
Because we have found supra at 38-40 that the Reorganization
Agreement does not constitute an agreement among the parties as
to the fair market value of the Securities, we agree with
petitioners that the provision of section 1060 on which
respondent relies does not apply in the instant case.
Is the Interstate Valuation Admissible as an Admission by
Petitioners?
Before we address the substantive issue of the fair market
value of the Securities, it is necessary to address an
evidentiary issue. At trial, respondent proffered a document,
the "Interstate Valuation", as proof of the fair market value of
10 Sec. 1060(a) as amended by OBRA 90, see supra note 9,
effective generally for acquisitions after Oct. 9, 1990, reads as
follows:
SEC. 1060. SPECIAL ALLOCATION RULES FOR CERTAIN ASSET
ACQUISITIONS.
(a) General Rule.--In the case of any applicable asset
acquisition, for purposes of determining both--
(1) the transferee's basis in such assets, and
(2) the gain or loss of the transferor with
respect to such acquisition,
the consideration received for such assets shall be
allocated among such assets acquired in such acquisition in
the same manner as amounts are allocated to assets under
section 338(b)(5). If in connection with an applicable
asset acquisition, the transferee and transferor agree in
writing as to the allocation of any consideration, or as to
the fair market value of any of the assets, such agreement
shall be binding on both the transferee and transferor
unless the Secretary determines that such allocation (or
fair market value) is not appropriate. [Emphasis added.]
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