Question on: JAMB Accounting - 2019

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

Ask EduPadi AI for a detailed answer
Correct Option: A
Average profit =14,000 + 24,000 + 10,000 + 16,000
                         4
=64,000
   4
=₦16,000

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