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According to the applicants, Colonial's assets to be conveyed to 

Eastern are valued as follows:

Net book value of assets as of December 31, 1954 ... $2,175,442
Cash from shares issued under Dunnion option ... 61,250
Excess of market value over book value of Colonial's fixed assets  3,236,506
Value of trained employees ... 934,505
Value of LaGuardia Airport lease ... 1,164,800
Intangible values ... 386,820 
TOTAL ... $7,959,323

Colonial's President testified that the current value of Colonial's assets is approximately $10,000,000. Colonial and Eastern maintain that Colonial's assets, both tangible and intangible, should be valued at fair market value. National takes the position that Colonial's assets should be valued at the book value of fixed assets as of June 30, 1955, which amounted to $2,071,178.

The theory in support of National's approach is that a carrier, and in turn its stockholders, has already recovered the cost of its fixed assets from users through depreciation expense and, assuming such equipment has been depreciated at a fair rate, the book value reflects their actual value. To accept this theory for purposes of 

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