Hospital Corporation of America and Subsidiaries - Page 53

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          rule.  See Fed. R. Evid. 803(6).11  At trial, respondent made no            
          attempt to lay the foundation required under rule 803(6) of the             
          Federal Rules of Evidence for the admission of the Interstate               
          Valuation as a business record.  See Waddell v. Commissioner, 841           
          F.2d 264, 267 (9th Cir. 1988), affg. per curiam 86 T.C. 848                 
          (1986); Forward Communications Corp. v. United States, 221 Ct.              
          Cl. 582, 626-629, 608 F.2d 485, 510-511 (1979).  Accordingly, we            
          find that the Interstate Valuation is not admissible under the              
          business records exception to the hearsay rule.                             
          What Is the Fair Market Value of the Securities?                            
               For Federal income purposes, the fair market value of                  
          property is the price that a willing buyer would pay a willing              
          seller for that property, neither one being under any compulsion            
          to buy or sell and both persons having reasonable knowledge of              
          all the relevant facts.  United States v. Cartwright, 411 U.S.              


          11  Fed. R. Evid. 803(6) provides as follows:                               
                    (6)  Records of regularly conducted activity.  A                  
                    memorandum, report, record, or data compilation, in any           
                    form, of acts, events, conditions, opinions, or                   
                    diagnoses, made at or near the time by, or from                   
                    information transmitted by, a person with knowledge, if           
                    kept in the course of a regularly conducted business              
                    activity, and if it was the regular practice of that              
                    business activity to make the memorandum, report,                 
                    record, or data compilation, all as shown by the                  
                    testimony of the custodian or other qualified witness,            
                    unless the source of information or the method or                 
                    circumstances of preparation indicate lack of                     
                    trustworthiness.  The term "business" as used in this             
                    paragraph includes business, institution, association,            
                    profession, occupation, and calling of every kind,                
                    whether or not conducted for profit.                              



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