At the time of her death, Betty owned 70% of the stock of Crane Corporation. Over the past five years, Crane reported an average net profit of $240,000, and the book value of its stock is $720,000. Assume that 8% is an appropriate after-tax rate of return for Cranes type of business. If required, round all computations to the nearest dollar.

a. What is the amount of Cranes goodwill?

b. How much as to the Crane stock is included in Bettys gross estate?