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Goodwill valuation
Why remuneration and IOC to partner are subtracted from average profit to value goodwill.
Replies (1)
That is because, average profits method involves calculating past and future PBT which excludes payroll expenses.
https://www.vedantu.com/question-answer/explain-various-methods-of-valuation-of-goodwill-5b83ace3e4b0a50233a9b8c3
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