Sunland Company is considering the acquisition of Cheyenne, Inc. To assess the amount it might be willing to pay, Sunland makes the following computations and assumptions.

A$.$

Cheyenne, Inc. has identifiable assets with a total fair value of $$6,005,000$ and liabilities of $$3,711,000.$ 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 Cheyenne, Inc.

B$.$

Cheyenne, Inc.$$s pretax incomes for the years $2020$ through $2022$ were $$471,200,$ $$572,700,$ and $$374,000,$ respectively. Sunland 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$)384,400$

Depreciation on Equipment $($each year$)32,100$

Extraordinary Loss $($year $2022)131,600$

Salary Expense $($each year$)172,400$

C$.$ The normal rate of return on net assets for the industry is $15\%.$

$($a$)$

Assume that Sunland 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 Cheyenne, Inc. Indicate how much of the price consists of goodwill. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places e$.$g$.58,971.)$

Goodwill $

Offering price $