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Super profit is Rs. 3,000 a year and is expected for 5 years. Goodwill by super profits?
ARs. 5,000
BRs. 1,50,000
CRs. 3,000
DRs. 15,000
Answer & Solution
Correct answer: D. Rs. 15,000
Goodwill equals super profit multiplied by years' purchase, so 3,000 times 5 is 15,000.
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