Goodwill Capitalization Questions

Arrange the steps of the method "Capitalization of Average Profits" for the calculation of goodwill in the correct sequence:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits as follows: $\text{Average Profits}\times \frac{100}{\text{Normal Rate of Return}}$ (B) Ascertain the average profits based on the past few years' performance.(C) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).(D) Compute the value of goodwill by deducting net assets from the capitalized value of average profits.Choose the correct answer from the options given below: