Problem: B52 Corporation's pre-tax accounting income of $726,000 for the year 2018 included the following items:
Amortization of identifiable intangibles $140,000
Depreciation of building 119,000
Loss from discontinued operations 46,000
Unusual, non-recurring gains 157,000
Profit-sharing payments to employees 69,300
Lush Industries Ltd. would like to purchase B52 Corporation. In trying to measure B52's normalized earnings for 2018, Lush determines that the building's fair value is triple the book value and that its remaining economic life is double the life that B52 is using. Lush would continue the profit-sharing payments to employees, with the payments being based on income from continuing operations before amortization and depreciation.
Required: How to calculate the 2018 normalized earnings amount of B52 Corporation that Lush would use to calculate goodwill.
Our Normalized Earnings Assignment Help service encompasses an enthusiastic panel of professional tutors, who all are highly qualified and have years of industry experience.
Tags: Normalized Earnings Assignment Help, Normalized Earnings Homework Help, Normalized Earnings Coursework, Normalized Earnings Solved Assignments