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However, we are not bound by the opinion of an expert witness,
especially when such opinions are contrary to our judgment. IT&S
of Iowa, Inc. v. Commissioner, 97 T.C. 496, 508 (1991). Where
experts offer divergent estimates of fair market value, we decide
what weight to give those estimates by examining the factors used
by those experts to arrive at their conclusions. Casey v.
Commissioner, 38 T.C. 357, 381 (1962). While we may accept the
opinion of an expert in its entirety, Buffalo Tool & Die
Manufacturing Co. v. Commissioner, 74 T.C. 441, 452 (1980), we
may be selective and use only part of such an opinion. Parker v.
Commissioner, supra. We may also reach a determination of value
based on our own examination of the evidence in the record.
Estate of Davis v. Commissioner, 110 T.C. 530, 538 (1998).
The parties in this case agree that the undiscounted fair
market value of the FOH shares on the valuation date is $6.9375
per share. The parties also agree that a marketability discount
is necessary if the shares are not to be aggregated. They
disagree, however, as to the appropriate marketability discount
to be applied. Respondent contends that the minority blocks of
FOH should be valued at $5.8969 per share, a 15-percent discount.
Petitioner argues that the shares of FOH have a value of $4.786
per share, a 31-percent discount. Petitioner supports its
conclusion with the testimony of Curtis R. Kimball (Kimball) and
Ira M. Cotler (Cotler).
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