Above-average earnings is often the basis for the calculation of goodwill.

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Above-average earnings are often considered a key factor in the determination of goodwill, as they are indicative of a company's ability to generate strong profits and maintain a competitive position in the market. When calculating goodwill, these earnings may be used as a basis for estimating future cash flows and assessing the overall value of the business. However, other factors may also be taken into account, such as brand reputation, customer loyalty, and other intangible assets that contribute to the company's long-term success.

Above-Average Earnings Is Often the Basis for the Calculation of Goodwill