Naughty Company assembled the following data relative to a certain entity in determining the amount to be paid for net assets and goodwill:

Assets at fair value before goodwill 2,600,000

Liabilities 900,000

Shareholders equity 1,700,000

Net earnings:

2016 200,000

2017 230,000

2018 300,000

2019 250,000

2020 270,000

Calculate the amount of goodwill under the following:

1. Average earnings are capitalized at 10%.

2. A return of 8% is considered normal on net assets at fair value. Excess earnings are capitalized at 15%.

3. A return of 10% is considered normal on net assets at fair value. Goodwill is measured at 5 years excess earnings.

4. A return of 10% is considered normal on net assets at fair value. Excess earnings are expected to continue for 10 years. Goodwill is measured by the present value method using a 12% rate. The present value of an ordinary annuity of 1 at 12% for 10 years is 5.65.