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do not believe that the language of the assignment agreement
supports petitioners’ argument. The assignment agreement
provides a formula to determine not only CFT’s fraction of the
gifted interest but also the symphony’s and the children’s
(including their trusts’) fractions.44 Each of the assignees had
the right to a fraction of the gifted interest based on the value
of that interest as determined under Federal gift tax valuation
principles. If the assignees did not agree on that value, then
such value would be determined (again based on Federal gift tax
valuation principles) by an arbitrator pursuant to the binding
arbitration procedure set forth in the partnership agreement.
There is simply no provision in the assignment agreement that
contemplates the allocation of the gifted interest among the
assignees based on some fixed value that might not be determined
44 If f equals the fair market value of the gifted interest
(determined by the assignees (or an arbitrator) based on Federal
gift tax valuation principles), and the gifted interest is shown
as the 82.33369836 percent class B assignee interest in MIL
transferred by petitioners, then, assuming f is equal to or
greater than $7,044,933, the products of the following formulas
show the percentage assignee interests apportioned to the
children (including the trusts), the symphony, and CFT, expressed
as x1, x2, and x3, respectively:
$6, ,
910 933 82 33369836%
� . = x
1
f
$7, , - , ,
044 933 6 910 933 82 33369836%
� . =x
2
f
f-$7, ,
044 933 82 33369836%
� . = x
3
f
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