Use the following information to answer this qu... - JAMB Accounting 2019 Question
Use the following information to answer this question
| Year | ₦ |
| 1991 1992 1993 1994 |
14,000 24,000 10,000 16,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
A
32,000
B
16000
C
30000
D
64,000
correct option: a
| Average profit = | 14,000 + 24,000 + 10,000 + 16,000
4 |
||
| = | 64,000
4 |
= | ₦16,000 |
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