- 41 -
and full consideration for the CamVic stock includable in decedent's
estate.
First, we note that during his testimony, Mr. Kimmel himself
corrected a number of errors in his report. For instance, Mr.
Kimmel's report listed the value of the Lakeview apartments under
the income approach--Mr. Kimmel's preferred approach--at $290,000 as
of the time of the 1981 Revised Agreement. At trial, Mr. Kimmel
testified that he received information subsequent to submission of
his report which caused him to increase his income approach
valuation of Lakeview to $340,000.30 Mr. Kimmel's report also stated
that the income approach value of Victory Tower as of April 30,
1981, was $825,000; however, at trial, Mr. Kimmel testified that he
had relied upon "suspect" data in the original report and that he
had changed his valuation under the income approach to $840,000, the
valuation determined by respondent. Mr. Kimmel's report applied a
liquidity discount in his cost approach valuation of CamVic and its
subsidiaries CamRon and Ferguson for both 1975 and 1981. Mr. Kimmel
testified that this was erroneous, as the discount should have been
applied at CamVic's level only. In his report, Mr. Kimmel valued
CamVic using the cost approach at $6,925 per share in 1975 and
$16,424 per share for 1981. At trial, Mr. Kimmel increased his
valuations under the cost approach to $7,439 per share and $17,876
per share for 1975 and 1981, respectively. At the trial, Mr. Kimmel
30Mr. Kimmel's final estimate of value for this property was
$325,000.
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