Estate of H.A. True, Jr. - Page 195




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              E. True Ranches                                                         
                  1. Marketable Minority Interest Values                              
                      a. H&H Report                                                   
              Hall and Hall Mortgage Corp. (H&H) prepared a detailed                  
          appraisal of land and improvements owned by True Ranches as of              
          January 1, 1993, and June 3, 1994.76  Mr. Hall and his colleagues           
          gathered data from local sources, including ranch owners,                   
          government offices, other appraisers, and real estate agents.               
          They also personally inspected the True Ranches properties and              
          examined comparable sales.  Mr. Hall concluded that the highest             
          and best use of True Ranches’ property was its current use as an            
          integrated commercial livestock range and finishing operation.              
              Mr. Hall found the cost approach to be the most reliable                
          measure of fair market value for True Ranches’ land and                     
          improvements; however, he also used the income and sales                    
          comparison approaches to corroborate his cost approach values.              
          Mr. Hall explained that the term “cost approach” was misleading,            
          because even though the method valued improvements based on                 
          estimated replacement cost, it valued land based on comparable              
          sales.                                                                      



               76H&H conducted a full appraisal of the subject property as            
          of June 3, 1994.  The H&H report stated that fair market value              
          did not change between June 3 and June 4, 1994.  Mr. Hall                   
          adjusted the June 3, 1994, value to reflect fair market value as            
          of Jan. 1, 1993, rather than conducting another full appraisal.             
          These adjustments took into account property acquisitions and               
          inflation in land values between the two valuation dates.                   




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