Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta:

Total identiable assets $558,400 $814,700 Total liabilities 303,400 312,100 Owners' equity $255,000 Cumulative total net cash earnings for the past ve years of $806,100 includes extraordinary cash gains of $65,400 and nonrecurring cash losses of $49,900. Alpha Company expects a return on its investment of 12%. Assume that Alpha prefers to use cash earnings rather than accrual-based earnings to estimate its offering price, and that it estimates the total valuation of Beta to be equal to the present value of cash-based earnings (rather than excess earnings) discounted over ve years. (Goodwill is then computed as the amount implied by the excess of the total valuation over the identifiable net assets valuation.) v (3) I2] Your answer is incorrect. Try again. Compute (a) an offering price based on the information above that Alpha might be willing to pay, and (b) the amount of goodwill included in that price. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e. 9. 58,971. ) X 1,072,591 (a) Offering price $ 8 (b) Goodwm $1