Problem $19-29($Algorithmic$)($LO$.3)$

At her death, Chow owned $55\%$ of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch

has earned average net profits of $$1,920,000,$ and on the date of Chow's death, the book value of its stock is $$4,800,000.$ An appropriate

rate of return for Finch's business is in is $5\mathrm{.}45\%.$

If required, round your intermediate computations to the nearest dollar.

a$.$ If goodwill exists, the total value of Finch stock is $

$x.$

What value would the IRS argue that the stock Chow owned should be included in her estate?

$

X