- 31 -
1961-347; Estate of Jung v. Commissioner, 101 T.C. 412, 423-424
(1993); Estate of Newhouse v. Commissioner, supra at 217; sec.
20.2031-1(b), Estate Tax Regs. However, future events that were
reasonably foreseeable at the valuation date may be considered in
determining fair market value. See Estate of Newhouse v.
Commissioner, supra at 218; Estate of Gilford v. Commissioner,
supra at 52; Gray v. Commissioner, 2 B.T.A. 672, 682 (1925); Estate
of Livermore v. Commissioner, T.C. Memo. 1988-503. The Court has
broad discretion to determine which facts are most important in
reaching a determination because "finding market value is, after
all, something for judgment, experience, and reason on the part of
the trier, and does not lend itself to dissection and separate
evaluation." Colonial Fabrics, Inc. v. Commissioner, 202 F.2d 105,
107 (2d Cir. 1953), affg. a Memorandum Opinion of this Court.
Determining fair market value of unlisted stock (such as J.R.
Simplot Co. stock) is, to say the least, difficult. Citing Alvary
v. United States, 302 F.2d 790, 795 (2d Cir. 1962), petitioner
admitted on brief that there is some "inherent inexactness of the
concept of fair market value". Here, our task is exacerbated as a
consequence of the skewed ratio of outstanding voting shares
(76.445) to nonvoting shares (141,288.584) in J.R. Simplot Co.'s
capital structure.
An actual arm's-length sale of unlisted stock in the normal
course of business within a reasonable time before or after the
valuation date is the best evidence of fair market value. See
Estate of Andrews v. Commissioner, supra at 940; Estate of Campbell
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