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The second adjustment is an increase over book value of
$280,000 as of September 30, 1981, which Mr. Sheldrick made in
order to reflect what he considered to be the fair market value
of the land, buildings, and improvements of the central hospital
complex. In this connection, we note that there is insufficient
evidence in the record for us to arrive at any additional amount
of such adjustment as of the closing date.
Finally, we note that Mr. Sheldrick excluded from his
valuation of petitioner any consideration of the real estate not
in use and the $581,153 reflected for such real estate on
petitioner's books. This fact was apparently inadequately
considered, by Messrs. O'Donnell and Rosenkranz in their
negotiations and by petitioner's officers and directors, a defect
which is significant in light of the availability of the
appraisals dated March 2, 1981, and July 8, 1982, made for
petitioner by Herbert Blanton which valued such land as follows:
Property Amount
County Road #77 $ 836,000
Belcher Road 210,000
Total $1,046,000
If one adds the increase of $464,847 ($1,046,000 less
$581,153 reflected for such real estate on petitioner's
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