Net income figures for Bramble Ltd. are as follows:

2016	-	$76,400
2017	-	$55,000
2018	-	$84,400
2019	-	$87,400
2020	-	$70,800

Future income is expected to continue at the average amount of the past five years. The companys identifiable net assets are appraised at $465,500 on December 31, 2020. The business is to be acquired by Sheffield Corp. in early 2021. The normal rate of return on net assets for the industry is 8%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

What amount should Sheffield Corp. pay for goodwill, and for Bramble Ltd. as a whole, if goodwill is equal to average excess earnings capitalized at 25%?

Sheffield Corp. pay for goodwill		$
Sheffield Corp. pay for Company		$

eTextbook and Media

What amount should Sheffield Corp. pay for goodwill, and for Bramble Ltd. as a whole, if a perpetual 18% return is expected on any amount paid for goodwill? (Round answers to 0 decimal places, e.g. 5,275.)

Sheffield Corp. pay for goodwill		$
Sheffield Corp. pay for Company		$

eTextbook and Media

What amount should Sheffield Corp. pay for goodwill, and for Bramble Ltd. as a whole, if goodwill is equal to five years of excess earnings? (Round answers to 0 decimal places, e.g. 5,275.)

Sheffield Corp. pay for goodwill		$
Sheffield Corp. pay for Company		$

eTextbook and Media

What amount should Sheffield Corp. pay for goodwill, and for Bramble Ltd. as a whole, if goodwill is equal to the present value of five years of excess earnings capitalized at 20%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

Sheffield Corp. pay for goodwill		$
Sheffield Corp. pay for Company		$