Use CURRENT GAAP principles to answer:

The president of Carnival Corp. Is considering purchasing Pirate Inc., whose balance sheet is summarized as follows: The fair market value of current assets is $665,000 because of the undervaluation of Inventory. The recorded book values of all other net assets approximate current fair values. The normal rate of return on net assets for the Industry is 15%. The average expected annual earnings projected for is $192,000. A. If the excess earnings continue for 10 years, how much should carnival be willing to pay for goodwill? Estimate goodwill by solving for present value