John E. Wall - Page 12




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               We are convinced that the valuation issue is capable of                
               resolution by the parties themselves through an                        
               agreement which will reflect a compromise Solomon-like                 
               adjustment, thereby saving the expenditure of time,                    
               effort, and money by the parties and the Court--a                      
               process not likely to produce a better result.  Indeed,                
               each of the parties should keep in mind that, in the                   
               final analysis, the Court may find the evidence of                     
               valuation by one of the parties sufficiently more                      
               convincing than that of the other party, so that the                   
               final result will produce a significant financial                      
               defeat for one or the other, rather than a middle-of-                  
               the-road compromise which we suspect each of the                       
               parties expects the Court to reach. * * * [Id. at 451-                 
               452; citations omitted.]                                               
          Of course, because the parties have insisted that we value the              
          Demco stock, we shall do our job.                                           
               For the reasons set forth below, we conclude petitioners               
          have not shown that the value of the gifts was less than the                
          $260.13 per share respondent determined in the statutory notices.           
          To the contrary, the record persuades us that the value was at              
          least equal to that amount.                                                 
               In reaching this conclusion, we are not imposing a sanction            
          on petitioners, cf. the taxpayer’s argument in Estate of Kaplin             
          v. Commissioner, 748 F.2d 1109, 1111-1112 (6th Cir. 1984), revg.            
          on another ground T.C. Memo. 1982-440, nor should Buffalo Tool &            
          Die be interpreted as expressing an intention to do so in any               
          comparable circumstances.  See Parker v. Commissioner, 86 T.C.              
          547, 562 (1986).  We have merely found respondent’s original                
          determination in the statutory notices to be closer to the actual           








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