Arrange the following steps to calculate the value of Goodwill by the capitalization method of super profit in a proper sequence:A. Calculate normal profit on capital employedB. Actual Profits - Normal Profits = Super ProfitC. $\text{Value of Goodwill}=\frac{\text{Super Profit}\times 100}{\text{Normal Rate of Return}}$ D. Calculate actual profits on capital employedChoose the correct answer from the given options:

To calculate goodwill using the capitalization of super profits method, the correct logical step-by-step sequence is:Step 1 (A): Calculate normal profit on capital employed using the formula:
$$\text{Normal Profit}=\text{Capital Employed}\times \frac{\text{Normal Rate of Return}}{100}$$
Step 2 (D): Determine or calculate the actual average profits earned by the firm.Step 3 (B): Compute Super Profit by subtracting Normal Profit from Actual Profit:
$$\text{Super Profit}=\text{Actual Profit}-\text{Normal Profit}$$
Step 4 (C): Capitalize the super profit to arrive at the value of Goodwill:
$$\text{Goodwill}=\frac{\text{Super Profit}\times 100}{\text{Normal Rate of Return}}$$
Thus, the sequence is A, D, B, C.