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Question
Identify the formula for calculating goodwill with the help of capitalised method of super profit.
Options
Goodwill = Super Profit × No. of Years
Goodwill = `"Super Profit"/"Normal Rate of Return"`
Goodwill = Normal Profit × No. of Years ÷ Super Profit
Goodwill
MCQ
Solution
Goodwill = `"Super Profit"/"Normal Rate of Return"`
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