Question

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 $150,000, and the book value of its stock is $500,000. Assume that 6% is an appropriate rate of return for Crane’s type of business.
a. What is the amount of Crane’s goodwill?
b. How much as to the Crane stock is included in Betty’s gross estate?


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  • CreatedSeptember 09, 2015
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