Estate of Cyril I. Magnin, Deceased, Donald Isaac Magnin, Executor - Page 28

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          well as the voting rights (as trustee) with respect to all of               
          Joseph's stock.  The parties do, however, dispute the value of              
          the interests that Cyril received.  In her notice of deficiency,            
          respondent permitted an offset for the value of consideration               
          received by Cyril in the amount of $43,878.  However, as                    
          previously mentioned, respondent amended her answer to disallow             
          any such offset.  On brief, respondent argues that in the event             
          that this Court finds that there was consideration, the amount of           
          the offset pursuant to section 2043(a) is limited to $30,752,               
          based on the report and testimony of her expert appraiser,                  
          Stephen A. Stewart.  Petitioner contends that the value of what             
          Cyril received on October 31, 1951, is $58,146, based on the                
          report and testimony of its expert appraiser, Bryan H.                      
          Browning.13                                                                 
               Both experts determined the overall value of JM and                    
          Specialty using a combination of a discounted future cash-flow              
          analysis and a market comparable analysis.  The experts differ in           
          their application of premiums or discounts in arriving at the               
          value of the consideration received by Cyril.  Mr. Browning,                
          petitioner's expert, applied a control premium of 40 percent to             
          the proportional equity value of JM, because after execution of             
          the 1951 Agreement, Cyril would hold 62 percent of the total                

          13The difference between the values assigned by each party                  
          to the consideration received, $27,394, is not significant when             
          one considers the value of the trusts includable in the gross               
          estate, which is equal to $3,833,727.                                       




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