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Average profit Rs. 90,000, capital Rs. 8,00,000, normal rate 10%. Goodwill at 4 years' super profit?
ARs. 10,000
BRs. 3,60,000
CRs. 40,000
DRs. 80,000
Answer & Solution
Correct answer: C. Rs. 40,000
Normal profit is 80,000, super profit 10,000, and four years' purchase gives 40,000.
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