A firm eamed average profit of OMR 80,000 during the last few years and the normal rate of return in a similar business is 10% The total assets are OMR 720,000 and outside liabilities are OMR 100,000. 1. Calculate the value of goodwill using Capitalization of Average profit method. OMR 180,000 None of the choices OMR 620,000 OMR 800,000 2. Calculate the value of net assets using Capitalization of Average profit method.

Principles of Accounting Volume 2
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Chapter9: Responsibility Accounting And Decentralization
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2. Calculate the value of net assets using Capitalization of Average profit method.
OMR 620,000
None of the choices
OMR 800,000
OMR 180,000
3. Calculate the capitalized value of average profit using Capitalization of Average profit method.
Transcribed Image Text:2. Calculate the value of net assets using Capitalization of Average profit method. OMR 620,000 None of the choices OMR 800,000 OMR 180,000 3. Calculate the capitalized value of average profit using Capitalization of Average profit method.
A firm eamed average profit of OMR 80,000 during the last few years and the normal rate of return in a similar business is 10%
The total assets are OMR 720,000 and outside liabilities are OMR 100,000.
1. Calculate the value of goodwill using Capitalization of Average profit method.
OMR 180,000
None of the choices
OMR 620,000
OMR 800,000
2. Calculate the value of net assets using Capitalization of Average profit method.
Transcribed Image Text:A firm eamed average profit of OMR 80,000 during the last few years and the normal rate of return in a similar business is 10% The total assets are OMR 720,000 and outside liabilities are OMR 100,000. 1. Calculate the value of goodwill using Capitalization of Average profit method. OMR 180,000 None of the choices OMR 620,000 OMR 800,000 2. Calculate the value of net assets using Capitalization of Average profit method.
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