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Corporate Accounting

4. From the following information, calculate the value of goodwill at three years' purchase of super profit. (3 Marks) i. Average capital employed in the business OMR 600,000 ii. Net trading profits of the firm for the past three years were OMR 107,600, OMR 90,700 and OMR 112,500 iii. Rate of interest expected from capital having to the risk involved is 12%. iv. Fair remuneration to the partners for their service OMR 12,000 p.a