Estate of Pauline Welch, Deceased, Newton G. Welch, Jr. and Lois Welch McGowan, Co-Executors - Page 5

                                        - 5 -                                         

          by decedent                 x 259                 x 259                     

          Value of decedent's                                                         
          shares per estate tax                                                       
          return (Form 706)       264,398                 330,491                     
          On December 22, 1993, the coexecutors filed a Form 706, United              
          States Estate (and Generation-Skipping Transfer) Tax Return,                
          electing the date of death as the valuation date.  The reported             
          value of the ESI and ISC stock is $264,398 and $330,491,                    
          respectively, for a per share value of $1,020.84 and $1,276.03,             
          respectively.                                                               
               On March 4, 1994, Newton acquired all of the voting and                
          nonvoting shares of both ESI and ISC which he did not already own           
          from Lanny B. McGowan, his brother-in-law, and Lois Welch McGowan           
          (collectively the McGowans) for $2,100,000.  At the time of the             
          transaction, Newton and the McGowans each owned 50 percent of               
          ESI's and ISC's voting and nonvoting shares. The purchase price             
          for the nonvoting shares of ESI and ISC was $1,021 and $1,276 per           
          share, respectively, the approximate per share value identified             
          on the estate's tax return.  The remainder of the purchase price            
          was allocated equally between ESI's and ISC's voting stock.                 
          Newton, as the buyer in the stock purchase agreement, covenanted            
          that ESI and ISC would purchase real property to relocate the               
          businesses of ESI and ISC once possession of their respective               
          properties was lost to the Metropolitan Government of Nashville             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011