Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owners of Amazon Corp. are planning to sell the business. The cumulative earnings for the past five years are $ 600,000 including non-recurring losses

The owners of Amazon Corp. are planning to sell the business. The cumulative earnings for the past five years are $ 600,000 including non-recurring losses of $ 100,000. The annual earnings based on an average rate of return for this industry would be $ 80,000. If excess earnings are to be capitalized at 12%, what is the implied goodwill?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Accounting questions

Question

Go, do not wait until I come

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago