Estate of Artemus D. Davis, Deceased, Robert D. Davis, Personal Representative - Page 9

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          characteristics of these hypothetical persons are not necessarily           
          the same as the individual characteristics of the actual seller or          
          the actual buyer.  Estate of Curry v. United States, 706 F.2d               
          1424, 1428, 1431 (7th Cir. 1983); Estate of Bright v. United                
          States, 658 F.2d 999, 1005-1006 (5th Cir. 1981).  The hypothetical          
          willing buyer and the hypothetical willing seller are presumed to           
          be dedicated to achieving the maximum economic advantage.  Estate           
          of Curry v. United States, supra at 1428; Estate of Newhouse v.             
          Commissioner, 94 T.C. 193, 218 (1990).                                      
               In the case of unlisted stock, like the ADDI&C stock in                
          question, the price at which sales of stock are made in arm's-              
          length transactions in an open market is the best evidence of its           
          value.  Champion v. Commissioner, 303 F.2d 887, 893 (5th Cir.               
          1962), revg. and remanding T.C. Memo. 1960-51.  In the instant              
          case, the record does not disclose any such sales of ADDI&C stock.          
               Where the value of unlisted stock cannot be determined from            
          actual sale prices, its value generally is to be determined by              
          taking into consideration the company's net worth, prospective              
          earning power, and dividend-paying capacity, as well as other               
          relevant factors, including the company's good will, its position           
          in the industry, its management, the degree of control of the               
          business represented by the block of stock to be valued, and the            
          values of securities of corporations engaged in the same or                 
          similar lines of business that are listed on a stock exchange.              
          Sec. 25.2512-2(f)(2), Gift Tax Regs.  Section 4 of Rev. Rul. 59-            




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