What issue was primarily addressed in the Simplot case?

The Simplot case primarily addressed the issue of marketability discount. In this case, the focus was on how much a business interest could be sold in the market and the implications that a lack of marketability has on valuation. Specifically, it explored how discounts are applied to the valuation of business interests that are not easily transferable or have liquidity constraints. This is particularly important in situations where a business has stock or interests that are neither publicly traded nor easily sellable, thus rendering the valuation of such interests subjective and dependent on market conditions.

The significance of addressing marketability discounts lies in how they can affect the overall valuation of a business. Properly assessing these discounts can yield a more accurate and equitable value for business interests, especially in cases of divorce, estate planning, or mergers and acquisitions. This evaluation requires a careful analysis of factors such as the time required to sell the business interest and any restrictions on sales, which was a central theme in the Simplot case.

The other choices include asset valuation methodology, which generally refers to how different methods are applied to assess the value of individual assets, and built-in gains tax, which deals with the tax implications of selling appreciated assets. Voting versus nonvoting stock pertains to the rights and privileges associated with different