Estate of Fred O. Godley, Deceased, Fred D. Godley, Administrator CTA - Page 34




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          We therefore believe that Beck’s reliance on Dvorak’s appraisals,             
          which used an income approach to value the real estate, was, in               
          general, proper.                                                              
          Beck’s Report                                                                 
               As earlier noted, under Beck’s net-asset approach, the value             
          of the partnerships was estimated to equal each partnership’s                 
          equity in its real estate assets (as appraised by Dvorak and                  
          Keith), plus cash and accounts receivable, net of liabilities.12              
          Beck’s appraisals of decedent’s interests in the housing                      
          partnerships, before discounts, were as follows:                              
          Charlotte                                                                     
          Real estate value                                                             
          (per Dvorak appraisal)              $1,480,000                                
          Less outstanding mortgage balance  1,380,000                                  
          Real estate equity                                  100,000                   
          Plus cash and accounts receivable                   259,343                   
          Less (nonmortgage) liabilities                      161,338                   
          Partnership value                                   198,005                   
          Value of 50% interest                               99,003                    











               12  The valuations of the accounts receivable and accrued                
          liabilities were based on audited financial statements dated                  
          Dec. 31, 1988.   The 1989 financial statements were not yet                   
          prepared as of the performance of the appraisals, and thus the                
          reconstructed market income statements for 1989 were used for                 
          both the market analysis and the operational analysis.                        




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