Question: Answer please. (Calculation of goodwill - Super Profit Method). A and B earned an average profit of $ 40,000. Their capital employed in the firm

Answer please. (Calculation of goodwill - Super Profit Method). A and

Answer please.

(Calculation of goodwill - Super Profit Method). A and B earned an average profit of $ 40,000. Their capital employed in the firm is $ 70,000. It is expected that the average rate of profit is 15% on the capital. Calculate the amount of Goodwill, if goodwill is valued at 2 years' purchase of Super profits

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