Louise B. Barnes, Donor, et al. - Page 28

                                        -28-                                          
               3.   Conclusion--Discounts                                             
               Based on the arguments of the parties and the record, we               
          conclude that discounts for lack of marketability of 40 percent             
          for the Home stock and 45 percent for the Rock Hill stock are               
          appropriate.  We further conclude that a 3.66-percent discount              
          for nonvoting stock is appropriate for the Rock Hill stock.  See            
          Estate of Lauder v. Commissioner, T.C. Memo. 1994-527 (40%                  
          discount for lack of liquidity or marketability); Martin v.                 
          Commissioner, T.C. Memo. 1985-424 (70% discount for                         
          marketability/minority considerations).                                     
          E.   Conclusion                                                             
               We conclude that the fair market value per share of the                
          stock of Home that the Helmlys gave to their children and                   
          grandchildren was $227.41 per share in January and December 1992,           
          and that the fair market value of the stock of Rock Hill that the           
          Barneses gave to their children was $201.12 per share on December           
          22, 23, and 26, 1992, and $193.34 per share on December 30,                 
          1992.16                                                                     
               To reflect the foregoing,                                              

                                                  Decisions will be entered           
          under Rule 155.                                                             


               16 The values of Home and Rock Hill stock reported on                  
          petitioners' returns ($230 and $220/$221 respectively) are                  
          admissions by petitioners and will not be overcome without cogent           
          evidence that they are wrong.  Waring v. Commissioner, 412 F.2d             
          800, 801 (3d Cir. 1969), affg. per curiam T.C. Memo. 1968-126;              
          Estate of Hall v. Commissioner, 92 T.C. 312, 337-338 (1989).                
          Petitioners have met this burden.                                           


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