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Question
Under this method, the value of goodwill is ascertained by deducting the actual capital employed (net assets) in the business from the capitalized value of the average profits on the basis of the normal rate of return.
Options
Capitalization of Average Profits
Capitalization of Super Profits
Both Capitalization of Average Profits and Capitalization of Super Profits.
None of these
MCQ
Solution
Capitalization of Average Profits
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Methods of Valuation of Goodwill
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