Carla Industries net income for the last five years, average earnings, and fair value of...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Carla Industries net income for the last five years, average earnings, and fair value of identifiable assets are as follows
| Earnings History | Fair Values, December 3, 2020 | |||||
| 2015 | $131,000 | Cash | $64,000 | |||
| 2016 | 153,000 | Accounts Receivables | 113,000 | |||
| 2017 | 154,000 | Inventory | 92,000 | |||
| 2018 | 123,000 | Property, Plant & Equipment | 216,000 | |||
| 2019 | 145,000 | Land | 97,000 | |||
| Total for 5 years | $706,000 | Liabilities | 92,000 | |||
| Fair value of identifiable net assets | $490,000 |
The return on investment of an average firm in the same industry is 20%. Excess earnings are capitalized at a discount rate of 20% in perpetuity. Estimate the value of goodwill using the total-earnings approach.
| Value of Goodwill | $Enter your answer in accordance to the question statement |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.