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Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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General accounting

Transcribed Image Text:The average net profits expected in the future by Khalifa and
Co. are RO. 30,000 per year. The average capital employed in
the business by the firm is RO. 200,000. The normal rate of
return on the capital employed in a similar business is 10%.
Calculate goodwill of the firm by:
1. Super Profit Method on the basis of two-year purchase.
2. Capitalization Method.
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