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Calculate the Goodwill in the following case under average profit method. Goodwill should be calculated based on 3 years' purchase of average profit. Profits for

Calculate the Goodwill in the following case under average profit method. Goodwill should be calculated based on 3 years' purchase of average profit.

Profits for Year 1 - $50,000

Profits for Year 2 -$40,000

Profits of Year 3 - $55,000

profits for Year 4 - $60,000

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