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States, 769 F. Supp. 362 (M.D. Fla. 1991); Advest, Inc. v. Rader,
743 F. Supp. at 854. We concluded above that House of Babes
transferred its assets without adequate consideration. Thus,
respondent has established that House of Babes made a fraudulent
conveyance under Florida law.
B. Value of the Transferred Assets
1. Positions of the Parties
Petitioners received cash and an interest in the buyers'
note proportionate to their interest in House of Babes. The
parties dispute the value of the note.
Petitioners contend that Wiltzius' interest in the note
(22.5 percent of $525,000 = $118,125) had a fair market value of
$23,376.15 and that Waldorf's interest in the note (32.5 percent
of $525,000 = $170,625) had a fair market value of $34,783.
Respondent contends that the fair market value of each
petitioner's interest in the note was his proportionate share of
its full face value; i.e., $118,125 and $170,625.
The fair market value of property is the price at which it
would change hands between a willing buyer and a willing seller,
neither under any compulsion to buy or sell and both having
reasonable knowledge of relevant facts. United States v.
Cartwright, 411 U.S. 546, 551 (1973); Estate of Hall v.
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