Question

what is Goodwill explain the method of goodwill​

Answer 1

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In the annuity method, goodwill can be calculated by taking average super profit. This particular profit is the value of an annuity over a certain number of years. Computation of the present value of this annuity is done by discounting it at the given rate of interest, i.e. on the normal rate of return.

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Answer 2

Answer:

In the annuity method, goodwill can be calculated by taking average super profit. This particular profit is the value of an annuity over a certain number of years. Computation of the present value of this annuity is done by discounting it at the given rate of interest, i.e. on the normal rate of return.