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

question 36

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.

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Definitions:

Neurotransmitter

A chemical that, released by one neuron, crosses the synaptic space to be received at receptors on the dendrites of neighboring neurons.

Clarity And Commitment

The qualities of being clear about one's goals and values, and being committed to pursuing them with determination.

Death Initiators

Factors or agents that lead to the onset of death in biological organisms.

Committed Annually

This term appears to be out of context; however, if related to statistics or events, it could mean actions or occurrences that happen once every year.