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    What is the formula to calculate goodwill under the capitalisation method?
    
    
    
    16. What is the formula to calculate goodwill under the capitalisation method?
    
        - Super profits multiplied by the rate of return
 
        - Average profits multiplied by the rate of return
 
        - Super profits divided by the rate of return
 
        - Average profits divided by the rate of return
 
    
    Answer: C) Super profits divided by the rate of return
    Explanation:
    The capitalization rate is a productivity metric used to decide the profit from a venture of land property. The equation for the rate of return is determined as networking pay partitioned by the current market worth of the resource.