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that that is correct. Petitioner’s expert, Ebner, was of the
opinion that the increase would be $363,000 a year. We reach a
figure close to that and conclude that the timberland would be
worth $41 million at the end of a 4-year partition period.
Accordingly, we believe that the partition award to a 25-percent
owner of the timberland at the end of a 4-year partition action
would be worth $10,250,000
III. Fair Market Value
Accordingly, using a 10-percent rate of return, a partition
period of 4 years, future income of $293,000 per year during the
partition period, partition costs of $662,500 (the purchaser’s
50-percent share of $1,325,000) allocated equally over the
partition period, and a value of $10,250,000 after partition, we
find that the fair market value of the 1987 gift to be $7,404,649
under the following calculation:
Year Income Partition Partition Total Present
Costs Payment Value
1 $293,000 - $165,625 + $0 $127,375 $115,795
2 293,000 - 165,625 + 0 127,375 105,268
3 293,000 - 165,625 + 0 127,375 95,699
4 293,000 - 165,625 + 10,250,000 10,377,375 7,087,887
Total $7,404,649
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011