Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are required to value the goodwill of the following business via Capitalisation of Super Profits Method, with the following provided information: Years' Purchase:

image text in transcribed

You are required to value the goodwill of the following business via Capitalisation of Super Profits Method, with the following provided information: Years' Purchase: 3 years Average trading after allowing for wages and remuneration: $255,000 Value of Net tangible assets $77,000 Value the goodwill using 11% per annum What is the value? O A. $739,590 OB. $4,854,545 O C. $731,480 O D. $4,900,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding financial statements

Authors: Lyn M. Fraser, Aileen Ormiston

9th Edition

136086241, 978-0136086246

More Books

Students also viewed these Finance questions