Sandhill Homes Company is considering the acquisition of Whispering, Inc. early in 2025 . To assess the amount, it might be willing to pay, Sandhill Homes makes the following computations and assumptions. A. Whispering, Inc. has identifiable assets with a total fair value of $15,018,000 and liabilities of $8,827,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 75% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Whispering, Inc. B. Whispering, Inc.'s pretax incomes for the years 2022 through 2024 were $1,202,200,$1,501,900, and $952,500, respectively. Sandhill Homes believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments to the following items included in pretax earnings: C. The normal rate of return on net assets for the industry is 15%. Assume further that Sandhill Homes feels that it must earn a 25% return on its investment and that goodwill is determined by capitalizing excess earnings. Based on these assumptions, calculate a reasonable offering price for Whispering, Inc. Indicate how much of the price consists of goodwill. Ignore tax effects. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971 .) Goodwill $ Offering price $ Attempts: 0 of 2 used (b) Assume that Sandhill Homes feels that it must earn a 15\% return on its investment, but that average excess earnings are to be capitalized for three years only. Based on these assumptions, calculate a reasonable offering price for Whispering, Inc. Indicate how much of the price consists of goodwill. Ignore tax effects. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places e.g. 58,971 .) Goodwill $ Offering price $