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Super profits are Rs 20,000 and goodwill is valued at 3 years' purchase of super profits. What is goodwill?
ARs 20,000
BRs 40,000
CRs 6,667
DRs 60,000
Answer & Solution
Correct answer: D. Rs 60,000
Super profit times three years of purchase is 20,000 times 3, which is 60,000.
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