Estate of Nathaniel M. Leichter, Deceased, Steven Leichter, Co-Special Administrator - Page 2




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          $2,091,750 reported as its fair market value on the estate’s tax            
          return.  The sole issue for our consideration is the fair market            
          value of Harlee International, Inc., on October 23, 1995, the               
          date of decedent’s death.                                                   
                                  FINDINGS OF FACT1                                   
               Decedent Natalie Leichter was a resident of Los Angeles,               
          California, at the time of her death on October 23, 1995.                   
          Decedent’s spouse, Harvey A. Leichter, died approximately 3                 
          months earlier during July 1995.  Decedent died testate and was             
          survived by two sons, Jeffrey L. Leichter and Steven F. Leichter.           
          Steven Leichter resided in Walnut, California, at the time the              
          estate’s petition was filed.  Among other things, the estate                
          included all of the outstanding common stock of Harlee                      
          International, Inc. (Harlee).                                               
               At the time of decedent’s death, Harlee was a California               
          corporation which had elected S corporation status for Federal              
          tax purposes.  Harlee had 20,000 shares outstanding and was a               
          wholesale distributor of futon frames.  Harlee was founded in               
          1981 by Harvey Leichter.  It began as a small importer and                  
          distributor of industrial fasteners imported from Asia.                     
          Initially, Harlee operated out of the Leichter residence.  In the           
          mid-1980s, Harlee entered into the business of the wholesale                



               1 The parties’ stipulations of facts are incorporated herein           
          by this reference.                                                          





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