Question: . (Calculation of goodwill - Average Profit Method). The profits and losses for last six years were 1st year - $ 3,000 (including gain on

. (Calculation of goodwill - Average Profit Method). The profits and

(Calculation of goodwill - Average Profit Method). The profits and losses for last six years were 1st year - $ 3,000 (including gain on sale of fixed asset $1,000) 2nd year - $ 7,000 (excluding $ 2,000 as insurance premium) 3rd year- $ 2,000 (after debiting loss due to fire $ 1,000) 4th year - $ 3,000 5th year - $ 5,000 (includes voluntary retirement compensation of $ 1,000) 6th year-$ 1,000 (Loss) Calculate the amount of Goodwill on the basis of 3 years' purchase of last 6 years Profits and losses

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