Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owners of Sheridan Electronics Store are contemplating selling the business. The cumulative earnings for the past 5 years totall $969000, including a gain on

The owners of Sheridan Electronics Store are contemplating selling the business. The cumulative earnings for the past 5 years totall $969000, including a gain on discontinued operations of $32600. The annual earnings based on an average rate of return on investment for this industry would have been $140600. If excess earnings are to be capitalized at 15%, then implied goodwill should be :-

-278,600

311,200

- 936,400 - 362,227

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

Auditing Investments

Authors: Barbara Davison

1st Edition

0894134272, 978-0894134272

More Books

Students also viewed these Accounting questions