Clarissa W. Lappo - Page 9

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          35-percent minority interest discount should apply to                       
          petitioner’s April 19, 1996, gifts, and a 30-percent minority               
          interest discount to her July 2, 1996, gift.  In addition, Mr.              
          Oliver concluded that there should be a 35-percent marketability            
          discount for each gift.                                                     
               2.  Respondent’s Expert                                                
               Respondent’s expert, Dr. Alan C. Shapiro (Dr. Shapiro), is             
          the Ivadelle and Theodore Johnson Professor of Banking and                  
          Finance and past chairman of the Department of Finance and                  
          Business Economics, Marshall School of Business, University of              
          Southern California (USC).  He is also an outside director of               
          LECG, LLC, an economic and financial consulting company.  Prior             
          to joining USC in 1978, he taught at the Wharton School of                  
          Business at the University of Pennsylvania and has been a                   
          visiting professor at Yale, the University of California at Los             
          Angeles, the University of British Columbia, and the Stockholm              
          School of Economics.  He is the author of numerous academic                 
          articles and books on corporate finance.                                    
               In his direct testimony, Dr. Shapiro concluded that the                
          partnership interests should be valued to reflect an 8.5-percent            
          minority interest discount and an 8.3-percent marketability                 
          discount.                                                                   









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