The Owners of Dallas' Electronics Store Are Contemplating Selling the Business

Multiple Choice

The owners of Dallas' Electronics Store are contemplating selling the business to new interests.The cumulative earnings for the past 5 years amounted to $900,000 including extraordinary gains of $30,000.The annual earnings based on an average rate of return on investment for this industry would have been $138,000.If excess earnings are to be capitalized at 15%, then implied goodwill should be

A) $210,000.
B) $280,000.
C) $240,000.
D) $870,000.