John T. Talkington and Margaret K. Talkington - Page 40

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          founded and shall apply a positive adjustment to BL2 of 10                  
          percent and a negative adjustment to BL1 of 10 percent.  We are             
          unconvinced, however, by Mr. Cantrell's unexplained "other"                 
          adjustments to BL3, BL4, and BL5 and shall not apply Mr.                    
          Cantrell's proposed "other" adjustments to these properties in              
          order to determine the fair market value of the Bates Center                
          property.                                                                   
               After applying the adjustments as we find proper to the                
          comparables, the adjusted price per square foot for the five                
          comparables is as follows:                                                  
                                BL1       BL2       BL3       BL4       BL5           
               Price Per Square Foot$4.87     $2.65     $3.26     $5.69     $3.81      
               Adjustments                                                            
               -  Location         (40%)     (40%)     (10%)     (40%)     (40%)      
               -  Size             (10%)     (10%)     (10%)     (10%)     (10%)      
               -  Zoning           (20%)       0%        0%    (20%)     (20%)        
               -  Other             (10%)      10%        0%      0%        0%        
               Total Adjustment    (80%)     (40%)     (20%)     (70%)     (70%)      
               Adjusted Price Per                                                     
               Square Foot         $0.97     $1.59     $2.61     $1.71     $1.14      
               Based upon our review of all the valuation evidence, giving            
          due consideration to our observation at trial of the witnesses              
          for both parties and considering their testimony and the expert             
          reports, we conclude that the Litton building was worth $1.60 per           
          square foot for a total value of $80,811.                                   
               B.   Bates Center Building                                             
               Under the sales comparison method, Mr. Cantrell determined             
          the fair market value of the Bates Center property, which was               
          10,022 square feet, to be $165,363 based on a value of $16.50 per           
          square foot.  Under the sales comparison method, Dr. Friedman               





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