Weighted average method of calculating goodwill is used when ______.

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KollegeApply · Accepted Answer

Weighted average method of calculating goodwill is used when profits show a trend. Explanation: The weighted average method of calculating goodwill is used when the profits show a trend, meaning they are either increasing or decreasing over the years. This method assigns more weight to recent profits, giving a more accurate reflection of future maintainable profits.

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