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that the estate is misreading the stipulation. We cannot think
of any other reason why the estate would be prejudiced. The 50-
percent test under section 2057(b)(1)(C) is an arithmetical
calculation based on the definitions of adjusted value and
adjusted gross estate in section 2057(c) and (d). The values
used to compute the adjusted gross estate and the adjusted value
are no longer in dispute. Respondent has not caused the estate
to “face a belated confrontation which precludes or limits that
party’s opportunity to present pertinent evidence”. Ware v.
Commissioner, 92 T.C. 1267, 1268 (1989), affd. 906 F.2d 62 (2d
Cir. 1990). All of the evidence needed to apply the legal
standard is already in the record. Neither party has suggested
that the record contains insufficient facts to permit us to
dispose of the case on the grounds of respondent’s argument. See
Smalley v. Commissioner, 116 T.C. 450, 457 (2001). The estate is
not arguing that any information needed to determine the values
in section 2057(c) and (d) is missing or that respondent’s
calculations are incorrect.
Further, the estate has no reason to be surprised by
respondent’s argument. Respondent’s argument does not raise a
new issue but appeals to the correct application of the law,
based upon the record presented and in support of a claim of
which the estate was well aware. See Zapara v. Commissioner, 126
T.C. 215, 219 (2006). It is based on the correct application of
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