John T. Talkington and Margaret K. Talkington - Page 41

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          determined the fair market value of the Bates Center building to            
          be $125,000 based on a value of $12.48 per square foot.                     
               Mr. Cantrell compared the Bates Center building to five                
          other churches that were sold in Lubbock between January of 1989            
          and September of 1992.  He made no adjustments to these sales               
          prices.  He determined that the sales price per square foot for             
          these buildings ranged from $6.01 to $26.46.  He removed the low            
          and high sales prices and was left with sales prices of $10.82,             
          $13.95 (the adjoining church), and $18.74 per square foot.  He              
          determined that $16.50 per square foot was the most reasonable              
          value estimate based on these three sales.                                  
               Dr. Friedman compared the Bates Center building to four                
          other churches that were sold in Lubbock between January of 1989            
          and September of 1992.  Three of these four sales were                      
          comparables that Mr. Cantrell used in his report.  He determined            
          that the sales price per square foot for the buildings he                   
          compared the Bates Center building to ranged from $12.06 to                 
          $20.47.  He determined that the sales price for the adjoining               
          church building was $16.70 per square foot.                                 
               Dr. Friedman calculated that the average unadjusted sale               
          price for the buildings was $15.60 per square foot.  He adjusted            
          this average price downward by 20 percent because he believed               
          that the motivation to purchase a church building was stronger              
          than to purchase an activities building.  He determined the                 
          adjusted price per square foot to be $12.48.                                



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