- 28 - 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.Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
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