Computation of Goodwill The Profit of Greystone, Inc., During the Last Several Years

question 123

Essay

Computation of Goodwill
The profit of Greystone, Inc., during the last several years has averaged $765,000 annually. The company is now being offered for sale as a going concern. The value of Greystone's net identifiable assets (total assets minus all liabilities) at the present time is $4,675,000.
One of several corporations interested in buying Greystone, offers to pay an amount equal to the value of the net identifiable assets and to assume all liabilities. In addition, this prospective buyer is willing to pay for goodwill an amount equal to net earnings in excess of 10% on net assets, expected to continue four years.
You are to use the above information as a basis for computing the price that the investing corporation will offer for Greystone,, Inc. $_______________

Recognize the significance of collaboration and participative management in the workplace.

Comprehend the importance of defined roles, goals, and clear communication in teamwork.

Recognize the impact of interpersonal communication skills on team success.

Acknowledge the need for and benefits of diversity within teams.

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