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The cwners of Tellmart Shoe Store are contemplating selling the business. The cumulative earnings for the past five years amounted to $$1,000,000,$ induding a gain on discontinued operation of $$40,000$ and an unual non$-$recurring loss of $$28,000.$ You have done some in research on the shoe industry and discovered that the normal rate of return on identifiable net assets is $14\%.$ The company's identifiable essets were appraised at $$900,000.$ After analyzing such variables as the stability of past earnings, the nature of the business, and generi economic conditions, you have decided that the average excess earnings should be capitalized at $18\%$ and that the excess earnings will c or eight years. What is your estimate of goodwill for this company using the present value approach?

lease use the space below to provide you solutions to the required in the question. lease enter any percents needed for your calculations in the green shaded area.

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