At the time of her death, Betty owned 60% of the stock of Crane Corporation. Over the past five years, Crane reported an average net profit of $150,000, and the book value of its stock is $500,000. Assume that 6% is an appropriate after-tax rate of return for Crane's type of business.

If required, round all computations to the nearest dollar.

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

$

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

$