Calculate the value of goodwill


Goodwill of a firm is valued at three year's purchase of the average profits of the last 5 years. The profits are as under 1997 - 50,000$ 1998- 20,000 [ LOSS] $ 1999- 10,000$ 2000 60,000 $ 2001- 80,0000 $ Calculate the value of goodwill?

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Accounting Basics: Calculate the value of goodwill
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