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by consulting auction guides, trade magazines, and new and used
equipment dealers. This suggests an active market for these
types of assets. However, Black Hills Trucking’s fixed assets
had a low tax basis relative to their resale value, which would
trigger a tax liability on sale. Also, a willing seller would
incur other transaction costs to dispose of the company’s assets
either on a bulk sale or an item-by-item basis.
Based on the record, we apply a 20-percent marketability
discount in valuing Dave True’s 58.16-percent interest in Black
Hills Trucking as of June 4, 1994. This level of marketability
discount on a controlling interest is within the range previously
allowed by this Court. See cases cited supra p. 238.
To determine the appropriate marketability discount for Jean
True’s 37.63-percent interest in Black Hills Trucking transferred
as of June 30, 1994, we draw from our discussion of discounts
applicable to minority interests in Belle Fourche. See supra pp.
238-239.
We find that a minority interest in Black Hills Trucking,
like a minority interest in Belle Fourche, is less marketable
than actively traded interests because: (1) The True family is
committed to keeping Black Hills Trucking privately owned, (2)
the subject interest lacks control, and (3) Federal tax rules
limit the pool of potential investors in S corporations.
Moreover, certain facts suggest that a minority interest in Black
Hills Trucking would be less marketable than a minority interest
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