Calculate the value of goodwill on the basis of 3 years' purchase of the average profits of the last four years. The profits for the last four years were: Year 1: Rs. 20,000; Year 2: Rs. 30,000; Year 3: Rs. 25,000; Year 4: Rs. 35,000.
1
Rs. 75,000
2
Rs. 90,000
3
Rs. 30,000
4
Rs. 27,500