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hypothetical willing seller. These hypothetical persons are not
specific individuals or entities, and their hypothetical
characteristics may differ from the personal characteristics of
the actual seller or a particular buyer. Estate of Watts v.
Commissioner, 823 F.2d 483, 486 (11th Cir. 1987), affg. T.C.
Memo. 1985-595; Estate of Bright v. United States, 658 F.2d 999,
1005-1006 (5th Cir. 1981); Kolom v. Commissioner, 644 F.2d 1282,
1288 (9th Cir. 1981), affg. 71 T.C. 235 (1978); Estate of
Newhouse v. Commissioner, 94 T.C. 193, 218 (1990); Estate of
Reynolds v. Commissioner, 55 T.C. 172, 195 (1970); see also
Mandelbaum v. Commissioner, T.C. Memo. 1995-255, affd. without
published opinion 91 F.3d 124 (3d Cir. 1996).
Experts often help the Court determine fair market value.
We need not follow an expert's opinion, however, when it is
contrary to our judgment. If we believe it appropriate, we may
adopt or reject an expert's opinion in its entirety, Helvering v.
National Grocery Co., supra at 294-295, or adopt only selective
portions of the opinion, Parker v. Commissioner, 86 T.C. 547, 562
(1986). See Doherty v. Commissioner, 16 F.3d 338, 340 (9th Cir.
1994), affg. T.C. Memo. 1992-98. With these basic principles in
mind, we turn to the issues in dispute.
1. Fair Market Value of the Decedent's Sterling Preferred Stock
Before addressing the value of the decedent's Sterling
preferred stock, we pause briefly to decide a relevancy issue
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