Exercise 19-23 (Algorithmic) (LO. 3) At the time of her death, Betty owned 60% of...
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Accounting
Exercise 19-23 (Algorithmic) (LO. 3) At the time of her death, Betty owned 60% of the stock of Crane Corporation. Over the past five years, Crane reported an average net profit of $160,000, and the book value of its stock is $480,000. Assume that 5% is an appropriate after-tax rate of return for Crane's type of business. If required, round all computations to the nearest dollar. a. What is the amount of Crane's goodwill? 136,000 X Feedback b. How much as to the Crane stock is included in Betty's gross estate? 288,000X
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