Use the following information to answer this question
| Year | ₦ |
| 1991 1992 1993 1994 |
14,000 24,000 10,000 16,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
- 32,000
-
16000
- 30000
- 64,000
The correct answer is: B
Explanation
| Average | profit | = | 14,000 + 24,000 + 10,000 + 16,000
4 |
| = | 64,000
4 |
= | ₦16,000 |