Crane Company is considering the acquisition of Swifty, Inc. To assess the amount it might be willing to pay, Crane makes the following computations and assumptions. A. Swifty, Inc. has identifiable assets with a total fair value of $6,010,000 and liabilities of $3,720,000. The assets include otfice equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Swifty, Inc. B. Swifty, Inc's pretax incomes for the years 2020 through 2022 were $470,700,$573,800, and $374,200, respectively. Crane 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 for the following items included in pretax earnings: C. The normal rate of return on net assets for the industry is 15%