balance sheet of the Robbins Company is presented below 2) The president of Logan Company is considering the purchase of the Robbins Company. The Current assets Investments 200,000 Current liabilities 75,000 Long-term liabilities 600,000 $ 100,000 00,000 450,000 Plant assets (net) Other assets Common stock -25.000 Retained Earnings Total assets 900,000 Total equities S 900.00 The fair market value of the Investments is overstated by $40,000; the fair market value of the plant assets is $700,000 because of the undervaluation of land. The fair market value of other assets is the same as the amounts reflected on the balance sheet. The normal rate of return on net assets for this industry is 16%. The average earnings projected for the company for the next five years is $135,000 for each year. REQUIRED: Estimate the amount of goodwill under each of the following methods Roeeins a) The capitalization of average excess earnings of Siena-Company at 16%. b) The present value of the average excess earnings over the next five years discounted at 12%