Smart Electronics' goodwill is to be valued at three years' purchase of the last five years' average profit. The annual profits for the past five years were: 2024: $85,000 . 2023: $76,000 • 2022: $68,000 . 2021: $71,000 2020: $70,000 Calculate the value of goodwill.

Smart Electronics' goodwill is to be valued at three years' purchase of the last five years' average profit. The annual profits for the past five years were: 2024: $85,000 . 2023: $76,000 • 2022: $68,000 . 2021: $71,000 2020: $70,000 Calculate the value of goodwill.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...

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Hii expert please given correct answer general Accounting question

Smart Electronics' goodwill is to be valued at three years'
purchase of the last five years' average profit. The annual profits
for the past five years were:
2024: $85,000
. 2023: $76,000
• 2022: $68,000
. 2021: $71,000
2020: $70,000
Calculate the value of goodwill.

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