Question: Part A . Little Tech Limited was recently sold to Big Tech, another larger tech company in the same industry. Little Tech s normalized expected

Part A.
Little Tech Limited was recently sold to Big Tech, another larger tech company in the same industry. Little Techs normalized expected annual future earnings are estimated to be $250,000, with the fair value of its net identifiable assets at $975,000. The average industry ROI is 18%.
Instructions
What is the estimated value of the goodwill using the excess earnings approach assuming (show calculations) the following:
a) Goodwill is equal to the average excess earnings capitalized at 20%.
Goodwill:_____________

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