I need a breakdown of the calculation and also explanation

Question 1

1. Ms Kim and sons earn an average profit of RM 60,000 with a capital of RM 400,000. The normal rate of return is 10%. Using capitalization of super profit method, calculate the value of the firms goodwill.

b.The Statement of Financial Position as at 31 December 2019 of Ang Berhad, is as follows:

Assets Goodwill Land Machinery Shares Debtors 47,500 Provision of bad debt (RDD) 1,500 Cash in bank Total	RM 15,000 95,000 60,000 57,500 47,500 3,500 278,500
Liabilities & Shareholders Equity Share capital Capital Reserve Profit or loss Creditors Depreciation Fund Land Machinery Total	RM 150,000 30,000 13,000 63,000 7,500 15,000 278,500

This company is to be purchased by Rahani Company. You are required to value the goodwill of the company, after taking into account the following information.

• The reasonable return on capital employed in the class of business done by the company is 12%.
• The companys average profit of the last five years after making provisions for taxation at 50% amounted to RM 47,500.
• The present market value of land is RM 11,000.
• The other assets are to be taken at book values.
• The directors of Ang Berhad (two in number) are to be appointed on the Board of directors of Rahani Company. The worth of their services is (and will be in future), RM 5,000 per annum for each of the two directors, but no charge has been made regarding this, against the profit of Ang Berhad.
• The goodwill of the business of Ang Berhad is to be taken at four years purchase of super profits of the company.