From the following information, calculate the value of goodwill:
Average net capital employed in the business 7,00,000.
Ne trading profit of the firm for the last three years: 1,47,600; 1,48,100 and 1,52,500.
Rate of return expected from the capital having regard to the risk involved 18%.
Fair remuneration to the partners for their services 12,000 per annum.
Sundry Assets (excluding goodwill) for the firm 7,54,762; Sundry Liabilities 31,329
Find goodwill on the basis of
(a) 3 years purchase of average profits
(b) 3 years purchase of super profits
(c) Capitalization of average profits
(d) Capitalization of super profits
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