Norwest Corporation and Subsidiaries - Page 3

                                         -3-                                          
               that no part of the purchase price is attributable to                  
               goodwill. In the notice of deficiency, respondent                      
               determined that petitioner overstated the fair market                  
               value of the lease portfolio by $1,328,618, which amount               
               should be allocated to goodwill, going-concern value, or               
               other nonamortizable intangible assets.                                
                    The parties presented experts who valued                          
               petitioner's lease portfolio.  The difference between the              
               experts' valuations centers around the different discount              
               rates they used (respondent's expert used a 15.6-percent               
               discount rate, while petitioner's expert used an 11.5-                 
               percent discount rate).                                                
                    Held:  Giving consideration to all the evidence                   
               presented, 13 percent is determined to be the appropriate              
               discount rate.                                                         


               Mark Alan Hager, Joseph Robert Goeke, Thomas C. Durham, David          
          Farrington Abbott, William Albert Schmalzl, Glenn A. Graff, Daniel          
          A. Dumezich, and Scott Gerald Husaby, for petitioner.                       
               Lawrence C. Letkewicz, Dana Hundrieser, and Gary J. Merken,            
          for respondent.                                                             



                                      CONTENTS                                        
          Page                                                                        
          General Findings ......................................... 6                
          Issue I.    Removal of Asbestos-Containing Materials ..... 6                
                    A. The Douglas Street Building ............... 7                  
                    B. Remodeling Plans .......................... 7                  
                    C. Use of Asbestos-Containing Materials in                        
                         the Douglas Street Building ............... 8                
                    D. Federal Asbestos Guidelines ............... 8                  
                    E. Testing at the Douglas Street Building and                     
                         Decision To Remove Asbestos-Containing                       
                         Materials ................................. 10               
                    F. Contractors and Work Performed ............ 13                 
                    G. Health Concerns ........................... 15                 




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