Accountancy, asked by dinesh3016, 4 months ago

steps to calculate goodwill​

Answers

Answered by srisatyalokesh80
2

Answer:

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Explanation:

This is the simplest and the most common method to calculate goodwill.

1) To summarize the formula: Goodwill = Average Profits X Number of Years.

2)For example, if you used the average annual profits of the years 2010-14, you would multiply the average by 5.

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