The profits of the last three years is 42000, 39000,45000. Value of goodwill of 2 years purchase of average profit is
A) 84000
B) 42000
C) 126000
D) None
Correct Answer:
Verified
Q8: If the amount of super profit is
Q9: Which goodwill is recorded in the books
Q10: When does need valuation of Goodwill
A)On retirement
Q11: Which methods of valuation of Goodwill
A)Super Profit
B)Capitalization
C)Average
Q12: Which factor affecting th value of Goodwill
A)Quality
Q14: What do you mean by Super Profit
A)Average
Q15: The excess of Average profit over normal
Q16: The monetary value of reputation of business
Q17: The profits of the last three years
Q18: Which methods of valuation of Goodwill
A)Super profits
B)Average
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