Maude G. Furman, Donor, Deceased, and Estate of Maude G. Furman, Deceased, Robert G. Furman, Executor - Page 16

                                       - 16 -                                         
          control of FIC through the receipt of 6 shares of issued and                
          outstanding FIC common stock.  On February 2, 1980, no                      
          shareholder of FIC other than Robert could obtain voting control            
          of FIC through the receipt of 12 shares of issued and outstanding           
          FIC common stock.  Because only one person, Robert, could gain              
          control through the 1980 Gifts, no swing vote premium would have            
          been paid by a hypothetical third-party buyer of shares of FIC              
          owned by Maude and Royal.                                                   
               On August 24, 1981, voting control of FIC could not be                 
          affected by the transfer of Maude and Royal's respective holdings           
          of FIC common stock, singularly or collectively.                            
               3.   Lack of Marketability                                             
               On both February 2, 1980, and August 24, 1981:  (1) BKC had            
          not established a buy-back program or policy for acquiring Burger           
          King franchises; (2) high interest rates contributed to a                   
          depressed market for the sale of Burger King franchises; and                
          (3) there was no readily available market for the stock of FIC.             
          Each of the foregoing factors contributed to a lack of                      
          marketability of FIC stock.                                                 
               4.   Combined Minority and Lack of Marketability Discount              
               On February 2, 1980, the fair market value of each                     
          decedent’s gratuitous transfer of 6 shares of FIC's common stock            
          was subject to a combined minority and marketability discount of            
          40 percent.  On August 24, 1981, the fair market value of the 24            
          shares of FIC's common stock transferred by each decedent in the            




Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  Next

Last modified: May 25, 2011