Estimated goodwill is determined by computing the present value of the:
A) average earnings.
B) excess earnings.
C) expected future earnings.
D) normal earnings.

Name: Estimated goodwill is determined by computing the present value of the: A) average earnings. B) excess earnings. C) expected future earnings. D) normal earnings.
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Question

Quizplus · Accepted Answer

Goodwill is often calculated by determining the present value of excess earnings, which are the earnings above the normal expected return on assets.

Estimated Goodwill Is Determined by Computing the Present Value of The