Howard Pontiac-GMC, Inc. - Page 17

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          present value.  See International Multifoods Corp. v.                       
          Commissioner, supra.                                                        
               Petitioner has failed to take these factors into account;              
          therefore we find that the covenant not to compete was worth less           
          than the $490,000 claimed by petitioners.  Respondent                       
          underestimated the probability that Mr. Markley would compete as            
          well as the damage that would be caused by such competition.                
          Consequently, we find that respondent has underestimated the                
          value of the covenant not to compete.  Based on the record as a             
          whole, considering all of the facts and circumstances, we hold              
          that the covenant not to compete had a value of $300,000.                   
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             under Rule 155.                          

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