Court Opinion

ID: 5304394
Source: CourtListenerOpinion
Date Created: 2022-01-08 03:22:40.907164+00
Date Added: 2024-06-11T08:29:07.191147
License: Public Domain

Per Curiam.
We have reached the conclusion that the value of testator’s stock of Scrantom’s, Incorporated, should be arrived at as follows:
Value of stock:
Assets (as per Exhibit 1)................................... $454,265 85
Deduct liabilities (as per Exhibit 1, plus taxes)............... 62,020 89
Book value of stock....................................... $392,244 96
Add value of good will as computed below................... 9,566 04
$401,811 00
Value of each share....................... $66 97
Value of good will:
Net profits for 1922 (Exhibit 4)............................. $36,326 00
Net profits for 1923 (Exhibit 4)............................. 27,543 36
Total for two years....................... $63,869 36
Average annual net profits for the two years. . Book value of capital stock: 31,934 68
1922
Stated capital (Exhibits).......... $349,376 60
Surplus (Exhibit 5)............... 4,000 00
Undivided profits 1922 (Exhibit 5).. 11,325 00
Book value of capital stock 1922................ $364,701 60
1923
Stated capital (Exhibits).......... $349,376 60
Surplus (Exhibit 5)............... 4,000 00
Undivided profits 1923 (Exhibit 5).. 27,543 36
Book value of capital stock 1923.............. 380,919 96
Total for two years....................... $745,621 56
Average book value of capital stock for the two
years...................................... 372,810 78
Six per cent interest on average capital...................... 22,368 64
Difference between average net profits and interest on average
capital................................................. $9,566 04
Good will factor 1 year.
Value of good will..................................... $9,566 04
Value of testator’s 2,500 shares............. $167,425 00
The learned surrogate determined as matter of fact that the “ good will factor,” being the number of years purchase to be used as a multiple in computing the value of the good will, should be one. A majority of the justices of this court find no sufficient reason to disturb this finding. The decree should be modified accordingly, and as so modified, affirmed, without costs. All concur, except *722Crouch, J., who dissents from so much of the determination as affirms the surrogate’s decision as to the factor, and is of the opinion that it should be two, instead of one. . Present — Hubbs, P. J., Clark, Sears, Crouch and Taylor, JJ. Decree modified in accordance with the opinion, and as modified affirmed, without costs of this appeal to either party.