Use the following information to answer this question
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
| Year | ₦ |
| 1991199219931994 | 14,00024,00010,00016,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
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Correct Answer: Option A
Explanation:
Â
| Average | profit | = | 14,000 + 24,000 + 10,000 + 16,000Â Â Â Â Â Â Â Â Â Â Â Â Â 4 |
Â
| = | 64,000  4 | = | ₦16,000 |