Profits of B Ltd. for the last 4 years respectively are:15,000,25,000,30,000 and 40,000.Average capital employed in the business is 2,00,000.Fair rate of return is 10% .It is expected that the company will be able to maintain its super profit for the next four years. Calculate goodwill according to annuity method after taking present value of an annuity of one rupre for 4 years @10% is 2.50.
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