Advanced D P Chapter Thirteen Chapter Review
Advanced Discount and Premiums
CURRENT JUDICIAL DEVELOPMENTS
ADVANCED DISCOUNTS AND PREMIUMS CHAPTER 13 REVIEW QUESTIONS
© 2003–2014 Robert J. Grossman and National Association of Certified Valuators and Analysts 2014.v1
Chapter Thirteen – 21
CURRENT JUDICIAL DEVELOPMENTS
Advanced Discounts and Premiums
ADVANCED DISCOUNTS AND PREMIUMS CHAPTER REVIEW QUESTIONS Chapter 13: Current Judicial Developments Affecting Discounts for Lack of Marketability 1.
When appraising a privately held business interest, the discount for lack of marketability is generally the largest adjustment in determining an estimate of value. a. b.
2.
The court did NOT accept each discount applied by the estate’s expert in Adams v. United States. a. b.
3.
True False
In Estate of Jameson v. Commissioner, the separate treatment of the built-in capital gains tax supports the outcome of the Estate of Davis case. a. b.
4.
True False
True False
In which of the following cases did the court allow a 15 percent discount for built-in gains tax that would be incurred upon disposition of the stock held by the estate? Further, the court held that the discount should be included in the discount for lack of marketability. a. b. c. d.
Estate of Davis v. Commissioner Estate of Desmond v. Commissioner Janda v. Commissioner Estate of Trompeter v. Commissioner
22 – Chapter Thirteen
© 2003–2014 Robert J. Grossman and National Association of Certified Valuators and Analysts 2014.v1
CURRENT JUDICIAL DEVELOPMENTS
ADVANCED DISCOUNTS AND PREMIUMS CHAPTER 13 REVIEW QUESTIONS
© 2003–2014 Robert J. Grossman and National Association of Certified Valuators and Analysts 2014.v1
Chapter Thirteen – 21
CURRENT JUDICIAL DEVELOPMENTS
Advanced Discounts and Premiums
ADVANCED DISCOUNTS AND PREMIUMS CHAPTER REVIEW QUESTIONS Chapter 13: Current Judicial Developments Affecting Discounts for Lack of Marketability 1.
When appraising a privately held business interest, the discount for lack of marketability is generally the largest adjustment in determining an estimate of value. a. b.
2.
The court did NOT accept each discount applied by the estate’s expert in Adams v. United States. a. b.
3.
True False
In Estate of Jameson v. Commissioner, the separate treatment of the built-in capital gains tax supports the outcome of the Estate of Davis case. a. b.
4.
True False
True False
In which of the following cases did the court allow a 15 percent discount for built-in gains tax that would be incurred upon disposition of the stock held by the estate? Further, the court held that the discount should be included in the discount for lack of marketability. a. b. c. d.
Estate of Davis v. Commissioner Estate of Desmond v. Commissioner Janda v. Commissioner Estate of Trompeter v. Commissioner
22 – Chapter Thirteen
© 2003–2014 Robert J. Grossman and National Association of Certified Valuators and Analysts 2014.v1
