calculate goodwill on the basis of 3 years purchase of 4 years average profit
year :2008 ,2009,2010,2011
profit :10000,16000,-6000,12
000
Answers
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Explanation:
average profit÷no of years
average profit = 38000-6000÷
= 10,666
good will ÷ no of purchase years
good will = 10,666×4
= 42,666
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