- 39 -
each category equal to the nominal prices charged in the relevant
market in 1985 and then applied premium units to individual items
based upon condition as well as desirability of the title.
Second, Everett failed to take into account the presence of
dead scene cards in the lobby card sets. “Live cards” were worth
considerably more than “dead cards”, even when included in
complete sets of lobby cards. Even though Everett adverted in
his testimony to the distinction between live and dead cards, he
did not systematically account for it in his valuation. There is
also nothing in the record to support Everett's assertions of
value in two other categories, twenty-four-sheets and 8- by 10-
inch stills.13
For these reasons, we reject Everett's valuation, even
though he chose the correct market and his overall methodology of
assigning premium values to more desirable titles relative to all
the items in a category would have been a reasonable approach if
he had used a valid base price.
3. Court's Valuation of the Collection
In Buffalo Tool & Die Manufacturing Co. v. Commissioner, 74
T.C. at 452, we observed that
each of the parties should keep in mind that, in the
final analysis, the Court may find the evidence of
valuation by one of the parties sufficiently more
convincing than that of the other party, so that the
final result will produce a significant financial
13 As discussed infra note 20, the twenty-four-sheets may
well have had some value in 1985.
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