Estate of Sam Homer Marmaduke - Page 7




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          v. Commissioner, T.C. Memo. 1997-53; sec. 20.2031-2(f)(2), Estate           
          Tax Regs.; Rev. Rul. 59-60, 1959-1 C.B. 237, 238-239.  Also, in             
          valuing closely held corporations, discounts may be warranted to            
          reflect the stock's lack of marketability and limitations on                
          transferability.  See Estate of Newhouse v. Commissioner, supra             
          at 249; Estate of Andrews v. Commissioner, supra at 953; Estate             
          of Brookshire, supra.                                                       
               We weigh expert witness testimony offered by the parties in            
          light of particular facts and circumstances of each case.  See              
          Helvering v. National Grocery Co., 304 U.S. 282, 294-295 (1938);            
          Seagate Tech., Inc. & Consol. Subs. v. Commissioner, 102 T.C.               
          149, 186 (1994); United Parcel Serv. of Am., Inc. v.                        
          Commissioner, T.C. Memo. 1999-268.                                          
               Petitioner's first expert, using a 60-percent discount for             
          lack of marketability, values the shares of decedent's stock in             
          Hastings at $9,210,000, or $25.15 per share.  Petitioner's first            
          expert reached this opinion by:  (1) Using the guideline company            
          method of valuation and comparing Hastings to several publicly              
          traded corporations engaged in similar lines of business;                   
          (2) using the guideline merged-and-acquired company method and              
          comparing similar corporations that were bought or sold within a            
          reasonable time of the valuation date; and (3) using the                    
          discounted cash-flow method.  Due to alleged lack of independent            
          bargaining and negotiations relating to the $47 price reflected             





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