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Trucking equipment could be sold in orderly fashion over a long
period of time, rather than in a forced liquidation.
Mr. Lax used the market approach to value assets in the
power and trailer equipment categories by gathering information
on recent sales of similar property and by determining the most
probable selling price of the subject property. In the process,
Mr. Lax consulted auction guides, trade magazines, and new and
used equipment dealers. He made no adjustments to market values
to reflect physical depreciation or functional or economic
obsolescence, assuming that these factors were incorporated into
the market data.
Mr. Lax used the cost approach to value assets in the
miscellaneous and office equipment category. He determined the
cost of new replacement assets by contacting original
manufacturers or by applying inflation factors to historical
costs and verifying the results with vendors. He then made
adjustments to each replacement cost figure to reflect
depreciation and obsolescence.
After reducing the fair market value of underlying assets by
total liabilities, the initial Lax report concluded that the
controlling marketable value of a 100-percent interest in Black
Hills Trucking was $10,933,730 as of June 3, 1994.
As described in more detail infra, the initial Lax report
applied a 50-percent marketability discount to arrive at a
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