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yet Marked out of 1.00 Flag question Il normal earnings is 36000 JD future earnings 45000 JD discount rate 15% Compute goodwill Select one! w 60000 b. 80000 c 100000 d 120000
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Answer a) 60,000 JD
Goodwill is calculated by capitalising the excess earnings.
Excess earnings
= 45000-36000
=9000 JD
Goodwill
= 9000/15%
= 60,000 JD
