If the problem can be shown step by step with an explanation on how to do the work that would be great.

Sunland Homes Company is considering the acquisition of Oriole, Inc. early in 2025 . To assess the amount, it might be willing to pay, Sunland Homes makes the following computations and assumptions. A. Oriole, Inc. has identifiable assets with a total fair value of $15,030,000 and liabilities of $8,815,000. 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 Oriole, Inc. B. Oriole, Inc's pretax incomes for the years 2022 through 2024 were $1,200,900,$1,500,800, and $955,000, respectively. Sunland 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: C. The normal rate of return on net assets for the industry is 15%. (a) Assume further that Sunland 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 Oriole, Inc. Indicate how much of the price consists of goodwill. Ignore tax effects. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places eg. 58,971.) Goodwill $ Offering price $ Attempts: 0 of 2 used (b) Assume that Sunland Homes feels that it must earn a 15% return on its imestment, but that average excess earmings are to be capitalized for three years only. Based on these assumptions, calculate a reasonable offering price for Oriole, Inc. Indicate how much of the price consists of goodwill. lgnore tax effects. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places e.g. 58,971