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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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Last modified: May 25, 2011