Question

Calculations of goodwill
2015 - 40,000 (profit)
2016 - 35,000 ( loss)
2017 - 60,000 (profit)
2018 - 45,000 (profit)

Answer 1

Answer:

um is this a question?

Explanation:

Answer 2

Answer:

27,500

Explanation:

Goodwill = Avg profit × no.of years of purchase

Average profit = Total profits for past given years

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no.of years

= 40,000 + (-35000) +60,000+45000

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4 years

= 1,10,000 ÷ 4 yrs

avg pft. = 27,500.

Good will = avg pft × no.of yrs of purchase

=. 27,500 × 1 (since nothing is given)

= 27,500.