Jewell E. Gray, Donor, Deceased and Estate of Jewell E. Gray, Deceased, Jewell Mae Detjen, Personal Representative, et al. - Page 12

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          1987.  Beth W. Corp. realized a taxable capital gain of                     
          $2,220,143, but did not recognize it (built-in capital gain)                
          because it elected installment sale treatment.5                             
               The trustees wanted to have the 55.91 acres rezoned so they            
          could sell it for a profit and repay the promissory note.  They             
          retained counsel, who arranged to have the zoning of the 55.91              
          acres changed to commercial.                                                
               The trustees listed the 55.91 acres for sale with a realtor.           
          Despite the realtor's efforts and a price reduction (of an amount           
          not specified in the record), the trusts had not sold the 55.91             
          acres by the time of trial.  Several other comparable                       
          developments already underway in the same area were not doing               
               Beck resigned as a trustee early in 1989.  First Union                 
          succeeded Beck as a trustee.  Smith, the trust administrator for            
          First Union, was responsible for irrevocable trusts #2 and #3.              
               The trusts paid the interest that was due on the note in               
          1988 and 1989, but did not pay the principal when it was due in             
          March 1990.  Beth W. Corp. paid Federal income tax on the                   
          interest it received on the note.  Beth W. Corp. had not                    
          foreclosed on the mortgage as of the date of trial.                         
               The fair market value of the 55.91 acres was $2,265,000 when           
          decedent died.                                                              

               5The parties stipulated that the real estate transfer was              
          not a taxable gift or generation skipping transfer.                         

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