Under capitalisation method, goodwill is calculated by :
A. Average Profit x No. of Years’ Purchase
B. Super Profit x No. of Years’ Purchase
C. Total of the discounted value of expected future benefits
D. Super Profit -r Expected Rate of Return
Answer:D
Under capitalisation method, goodwill is calculated by :
A. Average Profit x No. of Years’ Purchase B. Super Profit x No. of Years’ Purchase C. Total of the discounted value of expected future benefits D. Super Profit -r Expected Rate of Return