John T. Talkington and Margaret K. Talkington - Page 28

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          Dr. Friedman compared the Litton building to four of these same             
          five comparables.  Mr. Cantrell adjusted the comparables for                
          time, location, size, quality, condition, and "other".  Dr.                 
          Friedman adjusted the comparables for location, quality,                    
          condition, and "other".                                                     
               Dr. Friedman did not adjust the comparables for time, but              
          Mr. Cantrell applied a negative time adjustment of 5 percent to             
          LB1 and LB3.  These two properties were sold in December of 1988            
          and January of 1989.  We conclude that these adjustments are                
          reasonable due to the slow market in Lubbock and the fact that              
          since 1984 Lubbock had virtually no growth.                                 
               LB1 was located near the Litton building, but LB2, LB3, LB4,           
          and LB5 were located in southern Lubbock.  As both parties                  
          pointed out, southern Lubbock was where the bulk of industrial              
          development had taken place; therefore, comparable properties               
          located in southern Lubbock were in a more desirable location               
          than the Litton building.  Mr. Cantrell's report, however, only             
          made a negative location adjustment to LB3 (negative 10 percent).           
          Instead, he made positive location adjustments to LB2 and LB5 and           
          none to LB4.  Dr. Friedman, however, applied negative location              
          adjustments to LB2 (negative 10 percent), LB3 (negative 20                  
          percent), and LB5 (negative 5 percent).                                     
               We are more persuaded by Dr. Friedman's location adjustments           
          than by Mr. Cantrell's.  We shall not adjust LB1 for location and           
          shall apply a negative adjustment of 10 percent to the other four           



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