Sheridan Company is considering the acquisition of Windsor, Inc. To assess the amount it might be willing to pay, Sheridan makes the following computations and assumptions. A. B. Windsor, Inc. has identifiable assets with a total fair value of $6,034,000 and liabilities of $3,721,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Windsor, Inc. Windsor, Inc.'s pretax incomes for the years 2020 through 2022 were $471,000, $574,500, and $374,500, respectively. Sheridan 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 for the following items included in pretax earnings: Depreciation on Buildings (each year) C. 381,800 Depreciation on Equipment (each year) 33,800 Extraordinary Loss (year 2022) 134,300 Salary Expense (each year) 172,000 The normal rate of return on net assets for the industry is 15%. (a) Assume that Sheridan feels that it must earn a 20% return on its investment, and that goodwill is determined by capitalizing excess earnings. Based on these assumptions, calculate a reasonable offering price for Windsor, Inc. Indicate how much of the price consists of goodwill. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) $ Goodwill $ Offering price (b) Assume that Sheridan feels that it must earn a 15% return on its investment, but that average excess earnings are to be capitalized for five years only. Based on these assumptions, calculate a reasonable offering price for Windsor, Inc. Indicate how much of the price consists of goodwill. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) $ Goodwill Offering price $