X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be
A. Rs. 7,500
B. Rs. 3,750
C. Rs. 15,000
D. Rs. 9,000
Answer: Option B
This Question Belongs to Commerce >> Accounting
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