Collumber Homes company is considering the acquisition of Pharoah, Inc early in $2025.$ To access the amount it might be willing to pay Collumber homes makes the following computations and assumptions.

A$.$ Pharoah Inc. has identifiable assets with a total fair value $$15,017,000$ and liabilities of $$8,826,000.$ The assets include office equipment with a fair value approximating book value, buildings with a fair value $30\%$ higher than book value, and land with a fair value $75\%$ higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Pharoah Inc.

B$.$ Pharoah$$s Inc. pretax incomes for the years $2022$ through $2024$ were $$1,200,500,$ $$1,500,700,$ and $$951,200$ respectively. Collumber homes believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments to the following items included in pretax earnings

Depreciation on buildings $($each year$)963,000$

Depreciation on equipment $($each year$)52,600$

Extraordinary Loss $(2024)304,600$

Sales Commissions $($each year$)250,300$

C$.$ The normal rate of return on net assets for the industry is $15\%$

$($a$)$ Assume further that Collumber Homes feels that it must earn a $25\%$ return on its investment and that goodwill is determined by capitalizing excess earnings. Based on these assumptions, calculate a reasonable offering price for Pharoah Inc. Indicate how much of the price consists of goodwill ignore tax effects.

Goodwill $-$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Offering Price $-$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$