Question

Assertion: Normal business profit is considered for calculation of goodwill. Reasoning:Abnormal income and expenses arises due to some abnormal situation.

Choose from the options:
a) Both A and R is correct . R is the correct explanation of A
b) Both A and R is correct. R is not correct explanation of A.
c) Statement A is correct and R is incorrect.
d) Statement R is correct and A is incorrect.
e) Both A and R is incorrect. ​

Give reason.

Answer 1

Answer:

b) both A and R is correct. R is not correct explanation of A.