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The financial record ofunited power company shows that the capital employed is OMR 600,000. The trading results of united power are: 2015 - Profit OMR
The financial record ofunited power company shows that the capital employed is OMR 600,000. The trading results of united power are: 2015 - Profit OMR 58,000, 2016 - Profit OMR 80,000, 2017 - Profit OMR 80,000, 2018 - Loss OMR 66000; and 2019 - Profit OMR 120,000. In the year 2016, National detergent earned an income from investments outside the business OMR 33,000.
Assume the market rate of interest on investment is 13% and the goodwill at four years purchase of super profit. You are required to calculate the value of goodwill of united power company
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