M/s. XYZ LLC gives the following information related to Profit for last 8 years XXXXXXXXXXOMR 25,000, XXXXXXXXXXOMR 20,000, XXXXXXXXXXOMR 35,000, XXXXXXXXXXOMR 30,000, XXXXXXXXXXOMR 45,000,...

M/s. XYZ LLC gives the following information related to Profit for last 8 years - 2011 - OMR 25,000,

2012 - OMR 20,000, 2013 - OMR 35,000, 2014 - OMR 30,000, 2015 - OMR 45,000, 2017 - OMR

40,000, 2018 - OMR 55,000, 2019 - OMR 50,000. Further the concern giving you additional

information that the concern normal expects the Rate of Return @ 10% for the Capital Employed

OMR 250,000, Total Tangible Assets OMR 200,000 and Current Liabilities OMR 100,000.

Compute the value of goodwill on the basis of 4 years purchase under Capitalization of Average

Profit Method and Super Profit Method.Which method of goodwill calculation is beneficial for


the firm? Why these two methods showing two different values? Give your comments with the


calculated values.