(Super Profit Method). Average net pro...

(Super Profit Method).
Average net profit of Home Depot expected in the future is Rs. 54,000 per year. The average capital employed in the business is Rs. 3,00,000. Normal profit expected from capital invested in this class of business is `10%`. The remuneration of the partners is estimated to be Rs. 9,000 p.a.
Find out the value of goodwill on the basis of two years' purchase of super profit.

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