Estate of Marcia P. Hoffman, deceased, Elisabeth Hoffman, Personal Representative - Page 28




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          interest, and then applying a rate of return he felt a                      
          knowledgeable investor would require.                                       
               Clubside’s only significant asset as of the valuation date             
          was the Cathead property.  Mr. Bishop and Mr. Mitchell both                 
          relied on the Carbonell and Tarnow report which valued the entire           
          Cathead property at $3,147,092 as of December 30, 1992, of which            
          $870,000 was attributed to the house owned by decedent and Mr.              
          Hoffman.  Mr. Bishop determined that the fair market value of the           
          Cathead property owned by Clubside was $2,547,09221 as of August            
          18, 1994, while Mr. Mitchell determined that the fair market                
          value of the property as of that date was $2,685,057.22                     
               The liabilities of Clubside as of the valuation date                   
          consisted of accounts payable of $499 and the following                     
          promissory notes payable:                                                   
          Note Payable       Amount    Interest Rate   Maturity Date                  
          Melissa Hoffman Trust    $24,000        7.61%     1/01/2012                 
          Matthew Hoffman Trust    24,000         7.61%     1/01/2012                 
          Elisabeth Hoffman Trust  24,000         7.61%     1/01/2012                 
          Hoffman Associates       278,147        7.61%     1/01/2012                 
          Marcia Hoffman           173,063        7.61%     1/01/2012                 
          Al Hoffman, Jr.          189,053        7.61%     1/01/2012                 
          Melissa Hoffman          62,333         7.61%     1/01/2012                 


               21Mr. Bishop reached his determination by subtracting the              
          value of the house owned by decedent and Mr. Hoffman from the               
          value of the entire Cathead property.                                       
               22Mr. Mitchell reached his determination by making certain             
          adjustments to the figures determined in the Carbonell and Tarnow           
          report.  Specifically, he adjusted the value of the property                
          upward to account for its present value and then subtracted the             
          present value of the house, commissions costs, holding costs, and           
          road improvement costs.                                                     





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