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A Firm Earns ?1,00,000

Question 8

Multiple Choice

A firm earns ?1,00,000. The normal rate of return is 10%. The assets of the companyamounted to ?11,00,000 and liabilities to ?1,00,000. Value of goodwill by the capitalization of average actual profit will be


A) 2,00,000
B) 10000
C) 5000
D) 100000

Correct Answer:

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