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Whispering Winds Corporation is interested in purchasing Lau Company Ltd. The total of Lau’s net income...

Whispering Winds Corporation is interested in purchasing Lau Company Ltd. The total of Lau’s net income amounts over the past five years is $760,000. During one of those years, Lau reported a gain on discontinued operations of $94,300. The fair value of Lau’s net identifiable assets is $698,800. A normal rate of return is 15%, and Whispering Winds wants to capitalize excess earnings at 20%.

Calculate the estimated value of Lau’s goodwill.

Estimated value of Lau's goodwill $enter the Estimated value of Lau's goodwill in dollars
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