Mehring, W. (1%) $ 86,910 $ 27,241 $ 28,580 $ 47,577
Mehring, W. (33%) $ 44,372 $ 70,346 $ 72,560 $ 62,426
Mehring, P. (33%) $ 65,681 $ 70,327 $ 64,452 $ 66,820
Kalton (33%) $ 72,258 $ 61,923 $ 62,051 $ 65,411
Weighted Average $ 64,714 (88%)
Mehring, Walter & Sara 1.000% $ 5,500 $ 47,577 100% $ 5,500
Mehring, Walter & Paula 33.000% 181,500 62,426 88% 159,720
Mehring, Peter & Leslie 33.000% 181,500 66,820 88% 159,720
Total 100.000% $550,000 $ 64,714 $ 484,660
Aggregate Income Approach: $ 242,234 (4% of appraised value)
Weighted Income Approach: $ 64,714 (88% of appraised value)
Notes:
1) The Mehring Family Partnership is comprised of four (4) “husband and wife” partners.
2) The calculation of adjusted gross income was based on the joint returns of each couple.
3) Percent (%) Appraised Value is derived from the income grid (Attachment “A”)
4) Payment is calculated by multiplying a partners percent of ownership times the appraised value ($550,000). The resulting value is then multiplied times the applicable “percent of appraised value” based on average adjusted gross income (AGI) from the pervious three years.
Example: If Walter & Paula Mehring together own 33% of the partnership, their relative “ownership value” is $181,500 (33% x $550,000). Based on their average AGI from the previous 3 years, this “ownership value” must be multiplied times the applicable “Percent of Appraised Value”, as determined by the income grid. Since the Mehrings AGI falls in the 88% bracket (between $60,001-70,000), they should receive 88% of their ownership value or $159,720 (88% x $181,500).