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Peoples avoided making loans in Vanderburgh County because its
conservative-minded loan officers were unfamiliar with the area
and its values and because adding Evansville to Peoples'
designated CRA area would have increased Peoples' CRA compliance
requirements.
G. Estate Tax Return
Decedent's co-personal representatives executed and timely
filed a United States Estate (and Generation-Skipping Transfer)
Tax Return, Form 706, on August 8, 1994.13 The Form 706 had been
prepared by Jeffrey B. Baker, a certified public accountant and
certified financial planner. Decedent's 1,499 shares of Peoples
common stock were included on Schedule B of the Form 706. Of the
1,499 shares, the Form 706 reported 1,486 shares at a value of
$3,159,726 ($2,126 per share), and 13 shares at a value of
$10,400 ($800 per share).
The $2,126-per-share value reported on the Form 706 was
based on a valuation of the estate shares by Harding Shymanski &
Company, P.C. (HSC), an Evansville, Indiana, public accounting
firm. HSC valued the Peoples' total equity on a minority basis
using the weighted average value under three different valuation
methods. The three methods and their weightings were: (1)
Capitalized earnings (30 percent), (2) price/earnings multiple
13 Petitioner requested and received a timely extension of
time for filing the Form 706.
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