If the value of net-assets employed be Rs. 25,00,000. Average profit for the preceeding three years be Rs. 3,00,000 and the normal rate of return be 10%, the value of Goodwill by capitalization method will be:
A. Rs. 15,00,000
B. Rs. 5,00,000
C. Rs. 22,00,000
D. Rs. 2,50,000
Answer: Option B
This Question Belongs to Commerce >> Accounting
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