Question

In determining the value of goodwill attributable to stock in a closely held corporation, comment on the following factors.
a. The corporation’s average profit figure includes large gains from the sale of assets not related to the business conducted.
b. The salary structure of the owner-employees is low when compared to comparable businesses.
c. The rate of return used by the IRS for this type of business is too high.
d. The deceased owner was not active in the operation of the business.


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  • CreatedSeptember 09, 2015
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