Estate of Mario E. Bosca, Deceased, Marie A. Baker Formerly Marie A. Bosca, Executor - Page 18

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             stock in the recapitalization of HBC, described above.                   
             Respondent determined in the notice of deficiency and takes              
             the position in these proceedings that the decedent's                    
             exchange of stock was a transfer of property for less than               
             adequate and full consideration in money or money's worth,               
             as described in section 2512(b).  Unless stated otherwise,               
             section references concerning the estate tax are to the                  
             Internal Revenue Code as in effect on the date of the                    
             decedent's death, and section references concerning the                  
             gift tax are to the Internal Revenue Code as in effect                   
             during the years in issue.  Consequently, respondent                     
             determined in the notice of deficiency and argues here that              
             the amount by which the value of the decedent's voting                   
             common stock exceeds the value of the nonvoting common                   
             stock received in the recapitalization is a gift to the                  
             decedent's two sons, the only persons who held voting stock              
             after the transaction.  Respondent's methodology in the                  
             notice is the same as respondent's position in these                     
             proceedings, but the values differ.  The following schedule              
             summarizes respondent's position in the notice of                        
             deficiency and respondent's position at trial:                           

                                                Notice of Position                    
                                                Deficiency    at Trial                
             Value of a share of voting common stock$18,927     1$11,827                  
             before the recapitalization if held as                                   





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