Smith Corporation Is Interested in Acquiring Dawson Company and Has $\$ 180,000$

Smith Corporation is interested in acquiring Dawson Company and has obtained the following information about Dawson:
Daws on's net income has averaged $\$ 180,000$ for the past five years. This average is expected to continue in perpetuity The book value of Dawson's recorded net ass ets is $\$ 600,000$
Dawson owns a fully depreciated building with a market value of $\$ 150,000$ .
Dawson has title to a patent with a market value of $\$ 40,000$ , which is not included in Dawson's recorded net as sets.
The market value of Dawson's recorded net assets(excluding $c$ and $d$ above) is $\$ 1,000,000$ .
In evaluating the Dawson data, Smith believes that a 12% discount rate is appropriate.
Required:
Calculate each of the following and provide all necessary computations to support your
a. Based on the information provided, what price shoudd Smith be willing to pay to acquire Dawson?
b. What portion of the puchase price should Smith capitalize as purchased goodwill?