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24) Calculate goodwill at three year purchase of the average profits of last five years profits. The profits of the last five years were RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000 Therefore, the amount of goodwill will be: a. RO 72,000 b. RO 144,000 c. RO 24,000 d. RO 36,000

24) Calculate goodwill at three year purchase of the average profits of last five years profits. The profits of the last five years were RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000 Therefore, the amount of goodwill will be: a. RO 72,000 b. RO 144,000 c. RO 24,000 d. RO 36,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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24) Calculate goodwill at three year purchase of the average profits of last five years profits. The profits of the last five years were RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000 Therefore, the amount of goodwill will be:
a.
RO 72,000
b.
RO 144,000
c.
RO 24,000
d.
RO 36,000
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