he following details are related to ABC & Co, a trading partnership entity. Find the good will using 3 years' purchase (a) average profits (b) Super profits basis. Capital employed is 600,000. Normal rate of return is 15%. 2017: 90,000, 2018 150,000; 2019 120,000, 2020 180,000

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter15: Harvesting The Business Venture Investment
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he following details are related to
ABC & Co, a trading partnership
entity. Find the good will using 3
years' purchase (a) average profits
(b) Super profits basis. Capital
employed is 600,000. Normal rate
of return is 15%.
2017: 90,000, 2018 150,000; 2019
120,000, 2020 180,000
Transcribed Image Text:he following details are related to ABC & Co, a trading partnership entity. Find the good will using 3 years' purchase (a) average profits (b) Super profits basis. Capital employed is 600,000. Normal rate of return is 15%. 2017: 90,000, 2018 150,000; 2019 120,000, 2020 180,000
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