0.8.Goodwill is agreed to be valued at two year's purchase of the weighted averageprofits of the past three years. The appropriate weights to be used are : -2013 :-1; 2014:2; 2015 :-3.Following information is available about the business of a firm:recurring income of 1,000 is included in the profits of 2014, (iii) Profits of 2013 have(1) Profits : In 2013, 340,000; In 2014, 50,000; In 2015, 60,000, (in) Non-been reduced by 6,000 because goods were destroyed by fire, (iv) Goods have notheen insured but it is thought to insure them in future. The insurance premium isestimated at 400 per year, (v) Reasonable remuneration of the proprietor of businessis 76,000 per year, but it has not been taken into account for calculation of abovementioned profits, (vi) Profits of 2015 include 5,000 income on investment.Giodwill is agreed to be valued at two year's purchase of the wiethed average profits of the past three years ..The appropriate weightsed to be used are :- 2013:-1, 2014:-2,2015:-3.​