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OPINION
Issues 1 and 2. Valuation of J.R. Simplot Co. Stock
Our fundamental task is to determine the fair market value of
18 shares of class A voting stock and 3,942.048 shares of class B
nonvoting stock in J.R. Simplot Co. owned by decedent at the time
of his death. In performing this task, we must decide whether
under the facts and circumstances presented, a premium should be
accorded to the voting privileges of the class A voting stock and,
if so, the amount of that premium. Petitioner took the position
that no premium should be given to the voting privileges of the
class A stock and thus in the estate tax return valued both the
class A voting stock and class B nonvoting stock at $2,650 per
share, or an aggregate fair market value of $47,700 for the class
A voting stock and $10,446,427 for the class B nonvoting stock. On
the other hand, respondent asserts that the class A voting stock is
entitled to a premium for voting privileges and in the statutory
notice of deficiency determined an $801,994.83 per-share value for
the class A voting stock, for a total value held by decedent in
that class of $14,435,907, and a $3,585.50 per-share value for the
class B nonvoting stock, for a total value held by decedent in that
class of $14,134,213. On brief, respondent concedes that the
values of decedent's class A and class B shares do not exceed
$11,090,094 and $13,887,007, respectively.
It is well settled that a presumption of correctness attaches
to respondent's notice of deficiency. See Helvering v. Taylor, 293
U.S. 507, 515 (1935); Cohen v. Commissioner, 266 F.2d 5, 11-12 (9th
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