Bank One Corporation - Page 10

                                        -10-                                          
          OPINION......................................................159            
               I.     Overview.........................................159            
               II.    Does Section 475 Involve a Method of Accounting?.162            
                    A.  Overview.......................................162            
                    B.  Identification of a Method of Accounting.......164            
               III.   Burden of Proof..................................169            
               IV.    Tax Accounting for Methods of Accounting.........172            
               V.     FNBC’s Mark-to-Market Book Method................179            
                    A.  Mark-to-Market Method Acceptable for Section                  
          475............................................179                          
                         1.  Acceptable in Theory......................180            
                         2.  Acceptable In Practice....................183            
                              a.  Market Valuation of Inventories......183            
                              b.  Comprehensive Mark-to-Market                        
                              Accounting...........................184                
                    B.  Standard of the Mark-to-Market Method Is Not                  
                    Reasonableness.................................189                
               VI.    Application of Fair Market Value.................198            
                    A.  Overview.......................................198            
                    B.  History of the Term “Fair Market Value”........200            
                    C.  Determination of Fair Market Value.............204            
                         1.  Market Approach...........................205            
                         2.  Income Approach...........................205            
                         3.  Asset-Based Approach......................206            
                    D.  Fair Market Value Compared With Fair Value.....206            
                         1.  Meaning of the Term “Fair Value”..........206            
                              a.  GAAP Purposes........................206            
                              b.  State Law Purposes...................206            
                         2.  Difference Between Fair Market Value and                 
                         Fair Value................................207                
                         3.  Conclusion................................211            
               VII.   Property To Be Valued............................211            






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Last modified: May 25, 2011