The net assets of Stray Dogs, Inc. excluding goodwill have a total fair market value of $1,500,000 and earnings for the last 5 years total $800,000. Included in the latter figure are extraordinary losses of $40,000. A 10% return on identifiable net assets is considered normal for the industry and annual excess earnings are to be capitalized at 15% in arriving at goodwill in developing a sales price for the business. Compute the value of the company's goodwill (label all calculations). Hint. Extrapolate excess earnings assuming that average annual recurring earnings will be used. SHOW YOUR CALCULATIONS