1.

Goodwill of a firm is valued at the year purchases less 10% of the average profit oflast five years. The results of last five years are as under-3,000 Profit3,300 Profit3,700 Profit3,400 Loss5,400 ProfitCalculate the value of goodwill​

Answer»

ANSWER:

Your answer is 2160

Explanation:

Average profit=3000+3300+3700-3400+5400/5

=12000/5

=2400

Average profit=2400

Now,

We VALUED Goodwill at LESS 10% of average profit

so

2400×10%

240

2400-240

=2160

So the Goodwill of the firm is 2160

Hope it helps you



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