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Carla Industries net income for the last five years, average earnings, and fair value of...

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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

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