Carla Vista is considering an acquisition of King Bird Comp in early 2025. Carla made the following assumptions and calculations on what they might be willing to pay. 

King Bird has identifiable assets of $15,002,000 and liabilities of $8,806,000. Assets include office equipment with fair value approximating book value, building with fair value 30% more than book value, and land with fair value 75% higher than book value. The remaining lives of the assets are deemed to be approximately equal those used by King Bird. Kind birds pretax years for 2022 through 2024 were $1,200,900, $1,500,100, and $955,000 respectively. Carla Vista believes these earnings represent a fair earnings for the indefinite future.

 However, it may need to consider adjustments to the following items included in pretax earning: 

Depreciation on building each year of 964,700, 

depreciation on equipment each year of 50,400, 

extraordinary loss in year 2024 of 303,700 

sales commission each year of 252,700. 

The normal rate of return on an asset each year is 15%. Assume further that Carla Vista feels it must earn a 25% return on investment and that goodwill is determined by capitalizing excess earnings. 

1.  Required
2.  Based on these assumptions, calculate a reasonable offering prices for King Bird Comp.
3.  Indicate how much of the price is good will. Ignore tax effects.