John T. Talkington and Margaret K. Talkington - Page 29

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          comparables for location in order to determine the value of the             
          Litton building.                                                            
               The conclusory statements in Mr. Cantrell's report that the            
          Litton building was of a superior construction to LB1, LB2, LB4,            
          and LB5 do not explain how the Litton building was superior.  Mr.           
          Cantrell made positive adjustments to LB1, LB2, LB4, and LB5 of             
          30 percent, 10 percent, 30 percent, and 20 percent, respectively,           
          for the Litton building's superior construction.  He made no                
          adjustment, however, to LB3 even though he noted it was newer               
          than the Litton building.                                                   
               Dr. Friedman, however, explained that LB1 was inferior                 
          because it was a metal exterior building, and therefore he made a           
          10-percent positive adjustment to LB1.  Dr. Friedman also noted             
          that LB3 was a superior quality building due to its age and                 
          modern quality construction standards.  Therefore, he applied a             
          20-percent negative adjustment.                                             
               We are unconvinced by Mr. Cantrell's unexplained quality               
          adjustments and shall not apply his adjustments for quality in              
          order to determine the value of the Litton building.  We are                
          persuaded by Dr. Friedman's quality adjustments and shall use               
          them in order to determine the value of the Litton building.                
               Mr. Cantrell also adjusted the comparables for size.  He               
          applied a positive adjustment of 10 percent to the one comparable           
          (LB1) that was larger than the Litton building and applied                  
          negative adjustments of 10 percent, 10 percent, and 15 percent to           



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