Profit of a firm for previous years are as under (1) 40000 (2) 38000 (3) 45000 (4) 64000, profit of third year includes profit on sells of machinery amounting to Rs. 3000. It is expected that in future company will have to pay rent of Rs. 12000 instead of Rs. 8000 previously paid by the firm. Calculate the value of goodwill taking four years purchase of the average profit

Options :
  1. 184000
  2. 168000
  3. 164000
  4. 160000
Answer and Explanation :-

Answer: Option 2


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