?At the time of her death, Basu owned $75\%$ ?of the stock of Crane Corporation. Over the past five years, Crane reported an average net profit of $$180,000,$ ?and the book value of its stock is $$540,000.$ ?Assume that $4\%$ ?is an appropriate after$-$tax rate of return for Crane's business.

If required, round all computations to the nearest dollar.

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a$.$ ? What is the amount of Crane's goodwill?

b$.$ ? How much as to the Crane stock is included in Basu's gross estate? At the time of her death, Basu owned $75\%$ ?of the stock of Crane Corporation. Over the past five years, Crane reported an average net profit

of $$180,000,$ ?and the book value of its stock is $$540,000.$ ?Assume that $4\%$ ?is an appropriate after$-$tax rate of return for Crane's business.

If required, round all computations to the nearest dollar.

a$.$ ?What is the amount of Crane's goodwill?

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The valuation of the transferred property is an essential element of family tax planning. Revenue Ruling $59-60$ ?sets forth the approach, methods,

and factors to be considered in valuing the shares of closely held corporations for gift and estate tax purposes.

b$.$ ?How much as to the Crane stock is included in Basu's gross estate?