Jane O. Kosman - Page 2

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            1986, and March 31, 1987.  To decide the value of that stock, we                              
            must decide the following issues:                                                             
                  (1) The value of Kosman, Inc.'s 12,834 shares of                                        
            Scottsbluff National Corp. stock.  We hold that it was $3,278,009                             
            on September 30, 1986, and $3,530,454 on March 31, 1987.                                      
                  (2) The value of Kosman, Inc.'s 2,000 shares of Western                                 
            National Bank stock.  We hold that it was $120,000 on                                         
            September 30, 1986, and $144,000 on March 31, 1987.                                           
                  (3) The value per share before discounts of Kosman, Inc.,                               
            voting and nonvoting common stock.  We hold that it was $219.80                               
            on September 30, 1986, and $247.45 on March 31, 1987.                                         
                  (4) The appropriate discounts to apply in valuing the                                   
            Kosman, Inc., stock that petitioner gave to her children.  We                                 
            apply a minority interest discount of 10 percent and a lack of                                
            marketability discount of 15 percent to the voting and nonvoting                              
            shares, and a 4-percent discount for lack of voting power to the                              
            nonvoting shares.                                                                             
                  The fair market value of Kosman, Inc., stock that petitioner                            
            gave to her children after applying the discounts in (4) to the                               
            value per share of Kosman, Inc.'s stock in (3) is as follows:                                 
            Petitioner's   Respondent's                                                                   
             Date        Stock         Expert        Experts      Holding                                 
            9/30/86   Voting common    $116.24         $294       $164.85                                 
            Nonvoting         100.74          282        156.06                                           
            common                                                                                        





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