- 4 - marketable securities. As stipulated, the fair market value and tax basis of Johnco's assets as of September 22, 1991, were as follows: Asset Fair market value Tax basis Cash $25,000 $25,000 Investments 492,000 492,000 Building and equipment 196,000 196,000 Timber Property 6,000,000 217,850 Harris County Real Estate 240,000 110,740 Other 19,000 19,000 Subtotal 6,972,000 1,060,590 Liabilities (14,000) Net Asset Value 6,958,000 The Timber Property was well managed and highly productive. Of the 5,405 acres, 5,097 acres were wooded with mature timber, primarily 27- to 33-year-old slash pine, but also bottomland hardwoods and loblolly pine. An additional 108 acres of pine were premerchantable and ranged in age from 2 to 7 years in 1991. The remaining acres consisted of lakes and ponds, improvement sites, a road right-of-way, and a nontimberland area. Based on soil type and quality, and its site index,1 the Timber Property was considered to be extremely productive. Because of the Timber Property's productivity, desirable location, and contiguous nature, decedent's Johnco stock would be 1 Site index as defined by the U.S. Department of Agriculture is a designation of the quality of a forest site based on the height of the dominant stand at a designated age. Site index is essentially a measure of the productive capacity of a timberland site.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011