The president of Plain Corp., Joyce Lima, is thinking of purchasing Ayayai Corporation. She thinks that the offer sounds fair but she wants to consult a professional accountant to be sure. Ayayai is asking for $91,910 in excess of the fair value of the identifiable net assets. Ayayai's net income figures for the past five years are as follows:

2017-$72.930 2018-$50.700 2019-$88.380 2020-$72.950 2021-$67.900

The company's identifiable net assets were appraised at $361,000 on December 31, 2021.

You have done some initial research on the balloon industry and discovered that the normal rate of return on identifiable net assets is 15%. After analyzing such variables as the stability of past earnings, the nature of the business, and general economic conditions, you have decided that the average excess earnings for the past five years should be capitalized at 21% and that the excess earnings will continue for about six more years. Further research led you to discover that the Happy Balloon Corporation, a competitor of similar size and profitability, was recently sold for $477,550, five times its average yearly earnings of $95,510.

Calculate the following. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to O decimal places eg. 58,971. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1

Ayayai Corporation's goodwill and purchase price under excess earnings approach.

Goodwill Purchase price

Ayayai Corporation's goodwill and purchase price under number of years method. Goodwill Purchase price

Ayayai Corporation's goodwill and purchase price under times average earnings.

Goodwill Purchase price