Question

Mr. Mahesh Prasad runs a medical store. His net assets on 31st December 2014 amount to 20,00.000. After paying a rent of 20,000 a year and salary of 12,000 a year to the manager, he earns a profit of 1,40,000. His landlord is interested in acquiring the business. 8% is considered to be a reasonable return on capital employed. Mr. Mahesh Prasad can expect as payment for goodwill *​

Answer 1

Explanation:

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