UNFLEDGED Co. is contemplating on acquiring IMMATURE, Inc. The following information was gathered through a diligence audit: ? The actual earnings of IMMATURE, Inc. for the past 5 years are shown below:

• Earnings in 20x5 included an expropriation gain of ?1,600,000. ?
• The fair value of IMMATURE's net assets as of the end of 20x5 is ?40,000,000. ?
• The industry average rate of return is 12%. ?
• Probable duration of "excess earnings" is 5 years.

1. How much is the estimated goodwill using the multiples of average excess earnings method?

2. How much is the estimated goodwill using the capitalization of average excess earnings method? (Assume a capitalization rate of 25%)

3. How much is the estimated goodwill using the capitalization of average earnings method? (Assume a capitalization rate of 12.5%)

4. How much is the estimated goodwill using present value of average excess earnings method? (Assume a discount rate of 10%)

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Earning Year S 4,800,00 20x1 0 5,200,00 20x2 0 5,400,00 20x3 0 5,000,00 20x4 0 7,200,00 20x5 0 27,600,0 Total 00