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What is the amount of Crane goodwill

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Problem - 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 after-tax rate of return for Crane's type of business.

Required -

a. What is the amount of Crane's goodwill?

b. How much as to the Crane stock is included in Betty's gross estate?

Reference no: EM132650921

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