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partner. In light of all the facts and circumstances and
respondent’s concession, we find that a 20-percent lack of
marketability discount is appropriate.
For the reasons previously outlined, we believe Beck’s
analysis should be modified: (i) To include our adjustments to
Dvorak’s appraisals of the Charlotte and Monroe real estate; (ii)
to eliminate his 15-percent minority discount; and (iii) to apply
a 20- rather than 25-percent marketability discount. Using
Beck’s methodology, as modified, results in the following values,
which we find are correct:
Charlotte
Real estate value
(per modified Dvorak appraisal) $1,710,000
Less outstanding mortgage balance 1,380,000
Real estate equity $330,000
Plus cash and accounts receivable 259,343
Less (nonmortgage) liabilities 161,338
Partnership value 428,005
Value of 50% interest 214,003
Less 20% marketability discount 42,801
Correct value 171,202
Monroe
Real estate value
(per modified Dvorak appraisal) $1,690,000
Less outstanding mortgage balance 1,220,000
Real estate equity $470,000
Plus cash and accounts receivable 436,751
Less (nonmortgage) liabilities 117,444
Partnership value 789,307
Value of 50% interest 394,654
Less 20% marketability discount 78,931
Correct value 315,723
Rocky Mount
Real estate value
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