Net income figures for Flint Ltd. are as follows:

2016	-	$77,600
2017	-	$56,200
2018	-	$85,900
2019	-	$90,500
2020	-	$71,700

Future income is expected to continue at the average amount of the past five years. The companys identifiable net assets are appraised at $455,400 on December 31, 2020. The business is to be acquired by Pina Colada Corp. in early 2021. The normal rate of return on net assets for the industry is 7%. 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 Pina Colada Corp. pay for goodwill, and for Flint Ltd. as a whole, if goodwill is equal to average excess earnings capitalized at 25%?

Pina Colada Corp. pay for goodwill		$
Pina Colada Corp. pay for Company		$

eTextbook and Media

What amount should Pina Colada Corp. pay for goodwill, and for Flint 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.)

Pina Colada Corp. pay for goodwill		$
Pina Colada Corp. pay for Company		$

eTextbook and Media

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

Pina Colada Corp. pay for goodwill		$
Pina Colada Corp. pay for Company		$

eTextbook and Media

What amount should Pina Colada Corp. pay for goodwill, and for Flint 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.)

Pina Colada Corp. pay for goodwill		$
Pina Colada Corp. pay for Company		$