Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate...
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Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill as per Capitalisation Method would be: A B C D Rs. 1,00,000 Rs. 1,50,000 Rs. 2,00,000 Rs. 3,00,000 Capital employed in a business is Rs. 1,50,000. Profits are Rs. 50,000 and the normal rate of profit is 20%. The amount of goodwill as per Capitalisation Method would be: A B C D Rs. 1,00,000 Rs. 1,50,000 Rs. 2,00,000 Rs. 3,00,000
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Correct option is A Capitalization method of valuing goodwillUnder this method ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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