Estate of James J. Renier, Deceased, Kent L. Renier and Dubuque Bank & Trust Company, Co-Executors - Page 24

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                           d.  Adjustment for Partial Year                            
               The experts also disagree on how to “annualize” the income             
          from the partial fiscal year from July 1, 1993, through the April           
          10, 1994, valuation date for purposes of computing average income           
          for the base period.  Mr. Sliwoski extended the partial year                
          income data pro rata to a full fiscal year, added this amount to            
          the net income from the previous 5 years and divided the result             
          by 6.  Mr. Kramer, on the other hand, simply added the net income           
          from the 9.33 months of the partial fiscal year to the income               
          from the previous 5 years, divided the result by 69.33 months,              
          and multiplied the result by 12 to compute the average.                     
               The estate finds fault with Mr. Sliwoski’s approach, and we            
          agree.  By simply extending the results of the 9.33 months of the           
          partial fiscal year pro rata into 12 months, Mr. Sliwoski                   
          effectively postulates level income over each month of the fiscal           
          year.  We agree with the estate that this approach distorts                 
          Renier’s income.  The first 9.33 months of Renier’s fiscal year             
          include the holiday season, a period of high retail volume.  The            
          assumption that the average of the first 9 months of the fiscal             
          year would be replicated in the last 3 is highly unlikely.  In              
          addition, both sides have conceded that 1994 income was                     
          anomalous, due to the correction of the inventory error.  As a              
          result, we believe a more accurate average is achieved by                   
          averaging the actual results of the first 9.33 months of fiscal             
          1994 with the preceding 5 fiscal years, as Mr. Kramer has done.             

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