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2/15/90 Inventory on hand–-2,905 intervals
(Rounded)
Number Net Value Discounted Value (25%)
Sales (projected) 1,900 $3,381 $6,423,581
Remaining inventory 1,005 2,705 2,718,525
Value allocated to
inventory of
intervals 2,905 9,142,106
Total FMV 28,402,000
Value allocated
to land 19,259,894
Powhatan Associates’ balance sheet line items (other than
inventory and land devoted to time-share development) were
interpolated from the close of the end of the prior year to the
applicable valuation date (at a straight-line rate) to reflect the
time difference.4 (No provision for taxes was included in
determining the overall value of Powhatan Associates on the basis
that no tax is paid at the joint venture level.) After making
these adjustments, respondent’s experts concluded that (1) the
venturers’ equity in Powhatan Associates was $32,866,718 as of
February 16, 1989, and $35,001,760 as of February 15, 1990, and (2)
WVI’s one-third pro rata interest in Powhatan Associates (before
discounts to reflect lack of control and lack of marketability) was
$10,955,573 as of February 16, 1989, and $11,667,253 as of February
15, 1990.
4 The interpolation factor for Feb. 16, 1989, was 47
days/365 days, and for Feb. 15, 1990, was 46 days/365 days.
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