Hello tutor please given correct answer general Accounting The Goodwill is to be valued at two years' purchaseof the last four years' average profit. The profits wereR.O 40,000, R.O 32,000, R.O 15,000 and R.O 13,000respectively. Find out the value of goodwill.

Step 1:First calculate the average profit: Average profit = Total profit / Number of years…

Answered: The Goodwill is to be valued at two…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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The Goodwill is to be valued at two years' purchase of the last four years' average profit. The profits were R.O 40,000, R.O 32,000, R.O 15,000 and R.O 13,000 respectively. Find out the value of goodwill.