The Goodwill is to be valued at two years' purchase of last four years' average profit. The profits were R.O 40, 000, R.O 32,000, R.O 15,000 and R.O 13,000 respectively. Find out the value of goodwill
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- The Goodwill is to be valued at two years’ purchase of last four years’ average profit. The profits were OMR 40,000, OMR 32,000, OMR 15,000 and OMR 13,000 respectively. Find out the value of goodwillCalculate goodwill at three year purchase of the average profits of last five years’ profits. The profits of the last five years were: RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000. Therefore, the amount of goodwill will be: a. RO 36,000 b. RO 72,000 c. RO 24,000 d. RO 144,000 fast pleaseThe books of a business showed that the capital employed on January 1, 2001 was RO. 450,000 and the profits for the last five years were as follows 2001-RO. 40,000, 2002 -RO. 50,000, 2003 - RO. 60,000, 2004 -RO. 70,000 and 2005 -RO. 80,000. Based on three years purchase of the super profit of the business given that the normal rate of return is 10%. The amount of goodwill will be: a. RO 45,000 b. RO 65,000 c. RO 60,000 d. RO 90,000
- A truck was purchased for $58,000 and depreciates $6560 per year. Suppose that the vehicle is depreciated so that it holds 60% of its value from the previous year. Write an exponential function of the form =yV0bt , where V0 is the initial value and t is the number of years after purchase.2. Goodwill of a firm is to be valued at two years' purchase of three years' average profits. The profits of the last three years were: 2000 - RO 30,000, 2001 -RO. 40,000 and 2002 - RO.35,000. Calculate the amount of goodwill.From the following particulars relating to the business of Georg. Compute the value of goodwill on the basis of three years purchase of super profit taking average of last four. Fixed assets 800,000 Current assets 80,000 Current liabilities 160,000 Normal rate of return 15% Managerial remuneration if employed elsewhere $10,000 per annum. Profits of the last four years were $120,000, 130,000, 140,000 and 150,000 respectively.
- Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus depreciation. What is the gain or loss if the asset is disposed of after 5 years of operation for (a) $7000, (b) $0, and (c) a cost of $2000?24) Calculate goodwill at three year purchase of the average profits of last five years profits. The profits of the last five years were RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000 Therefore, the amount of goodwill will be: a. RO 72,000 b. RO 144,000 c. RO 24,000 d. RO 36,000An asset which costs $25,000 and has accumulated depreciation of $6,000 is sold for $11,000. What amount of gain or loss will be recognized when the asset is sold? a. A gain of $14,000 b. A loss of $14,000 c. A gain of $8,000 d. A loss of $8,000
- Calculate goodwill at twice the average profits of last four years’ profits. The profits of the last four years were: RO. 13,500, RO. 19,500, RO. 8,000 (Loss) and RO. 20,000. Therefore, the amount of goodwill will be: a. RO 22,500 b. RO 67,500 c. RO 45,000 d. RO 12,500 ***fast please****In which of the following situations would Martinez Indus-tries include goodwill in its balance sheet? a. The fair market value of Martinez’s net identifiableassets amounts to $2,000,000. Normal earnings for thisindustry are 15 percent of net identifiable assets. Netincome for the past five years has averaged $390,000.b. Martinez spent $800,000 during the current year for research and development for a new product that prom-ises to generate substantial revenue for at least 10 years. c. Martinez acquired Baxter Electronics at a price in excess ofthe fair market value of Baxter’s net identifiable assets. d. A buyer wishing to purchase Martinez’s entire opera-tion has offered a price in excess of the fair market value of the company’s net identifiable assets.an asset was purchased at 480,000. it has an estimated life of10 years, and is sold at 50,000. what is depreciation of the first year?