Multiple Choice
Frosty Corp.'s average annual net income is $75,000 above the average for Frosty's industry.Casper is interested in purchased Frosty.Assuming Casper estimates goodwill by capitalizing excess earnings at 14%, the estimated goodwill (to the nearest dollar) is
A) $1,050,000.
B) $954,333.
C) $535,714.
D) $ 0.
Correct Answer:
Verified
Correct Answer:
Verified
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