Pierce Company is trying to decide whether to acquire Hager Inc., Pierce Company expects that Hager will earn approximately $200,000 per year in net income over the next five years. This income is higher than the 14% annual return on assets considered to be the industry "norm." Use the above information to choose the best answer: Assume the fair value of Hager Inc. assets equal to $1,050,000. What is the estimation of goodwill if Pierce is willing to pay for excess earnings for an expected life of 4 years? Assume the fair value of Hager Inc. assets equal to $1,050,000. What is the estimation of goodwill if excess earnings are expected to last indefinitely, but Pierce demands a higher rate of return of 20% because of the risk involved? What should be the amount of pretax income of Barkley Co. for year 2009, if all other information are the same and the excess earning per year is $77,000? What is the amount of the adjusted earnings of Barkley Co. for year 2010? O $475,000 O $480,000 O $470,000 Non of the above What is the amount of the adjusted earnings of Barkley Co. for year 2011