Estate of Lewis A. Bailey, Deceased, Frances Jeanette Foster, Executrix - Page 17

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                    Petitioner’s Experts                                              
               Schwartz also utilized the Ohrmund report’s $1,388,000                 
          valuation of the California motel; in a footnote, however,                  
          Schwartz indicated, without elaboration, that he had adjusted the           
          value of C&L Bailey’s assets downward by $193,000 to reflect “the           
          land originally owned by C&L Bailey, Inc., but discovered to be             
          owned by” decedent.                                                         
               In his “desk review” of the Ohrmund report, Biles accepted             
          the Ohrmund report’s conclusion that the combined value of                  
          parcels 1 and 2 was $250,000 and sought to allocate this value              
          between the two parcels.  Using the commercial land sales                   
          comparables contained in the Ohrmund report, Biles concluded that           
          the value of parcel 1, as a stand-alone asset, was $185,895.                
          Biles then concluded that the $64,105 “residual value”                      
          represented the value of parcel 2, which he concluded should be             
          treated as decedent’s separate property.                                    
               In his “desk review”, Biles faulted the Ohrmund report for             
          failing to give appropriate weight to a number of economic                  
          factors cited therein, including a downturn in the Ridgecrest,              
          California, motel market.  The Biles report also faulted the                
          Ohrmund report for failing to consider a “‘QUICK SALE VALUE’                
          which, based on the review appraiser’s [i.e., Biles’] knowledge             
          of the NEED TO SETTLE THE ESTATE, should have been a MAJOR FACTOR           
          in the FINAL ESTIMATED VALUE”.  (Idiosyncratic typography in                

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