Diminution principle

Hello Jilly,

In which case will the diminution in value principle be used to calculate a transfer of value?

-When the fall in value of an estate is not equal to the market value of the part of the estate being given away
-When the fall in value of an estate is equal to the market value of the part of the estate being given away

The correct answer is the first statement.

But here the fall in the value of the estate will be based on the prices given in the question

so how these are different from the market value

I am not able to grasp this idea ,

Thanks,