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138 capital was paid in. Therefore this additional sum of money ought to be subtracted [[strikethrough]] from [[/strikethrough]] in case we use present assets as a basis for computing earnings in relation to investments. But I believe it would be much simpler to [[strikethrough]] follow [[/strikethrough]] ^[[apply]] the formula for good will as follows: [[vertical red line in left margin highlights the formula]] (P+D+T)-C --------- x 100$ = Cs 11x8x[[strikethrough]] [[100?]] [[/strikethrough]] ^(88) [[erased number under "Cs"]] (8800) [[/erased number]] [[bracketed annotation to the right of "Cs"]] {Value Cs can be divided by 2 or 3 or 10 or any number agreed upon. [[/bracketed annotation]] in which C = cash put in the company (in our case $360000) P = Physical assets as appraised up to date by [[strikethrough]] P.A C.P [[/strikethrough]] Chartered Public accountant. This includes 1/ real estate & buildings [[/vertical red line in left margin]] 2/ machinery and general equipments 3/ supplies 4/ Raw materials 5/ Partly manufactured materials 6/ Manufactured materials ready [[end page]] [[start page]] 139 for delivery 7/ cash 8/ securities 9/ Bills and accounts receivable From this has to be deducted all debts, bills and accounts payable P does [[underline]] not [[/underline]] include any value for patents, trade marks, or good will nor any intangible assets. D = Dividends paid to stock holders since the company was started until to date of [[strikethrough]] agreement [[/strikethrough]] computing physical assets. T = Federal taxes paid to U.S. Government. In this ought to be examined any pending claims for or against the Government The number [[underline]] 11 [[/underline]] represents common dividor of the 11 years of existence of the[[strikethrough]] older [[/strikethrough]] ^[[2 senior]] companies 100 stands for $100 [[strikethrough]] calculating [[/strikethrough]] capitalizing good will at [[strikethrough]] 10% [[/strikethrough]] 8% and [[underline]] 8 [[/underline]] stands for the latter. We might use 10 as well