Financial 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: Calculate the Average Profit• Add the profits of the last four years.• Divide the total…

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...

See similar textbooks

Similar questions

Calculate the amount of goodwill?
The following details relate to M/s XYZ, a firm: Average profit of last four years = $7,00,000 Average capital employed by the firm: $55,00,000 Normal rate of return :10% Present value of annuity of $1 for 4 years @ 10% : 3.1699 Determine the value of goodwill on the basis of annuity of super profit.
An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using declining-balance method. a. After one year b. After two years c. After six years a. The book value after one year is $ . (Round to the nearest dollar as needed.)
Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus depreciation. What is the gain or loss if the asset is disposed of after 5 years of operation for (a) $7000, (b) $0, and (c) a cost of $2000?
The MACRS depreciation allowances on 3-year property are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. What is the amount of the depreciation for Years 1, 2, and 3 for a 3-year property with an initial cost of $64,000?
am. 281.
If the EBIT for the year is $5000, depreciation is $1000 and the tax rate is 20%. Further CA on Dec. 31st were $1500 and the CL were $700. On Jan. 1st the CA were $1000 and the CL were $800. The value of Future Assets on Dec.31st was $3000 and on Jan.1st was $5000. Find the CFA.
Question for Maroon Company: • HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? • HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE? For Noypi Store, follow the requirement. (Choose from the choices and kindly provide a solution.)
An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual cash inflows are R900,000, the cash payback period is A. 8 years. B. 7 years. C. 6 years. D. 5 years.
An asset is purchased for Php50,000. The salvage value in 25 years is Php100,00. What are the depreciation in the first three years using straight line method?
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
A truck was purchased for $58,000 and depreciates $6560 per year. Suppose that the vehicle is depreciated so that it holds 60% of its value from the previous year. Write an exponential function of the form =yV0bt , where V0 is the initial value and t is the number of years after purchase.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

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.