If super profit is zero, what will be the goodwill under the super-profit method?

Correct answer: Zero

Under the super-profit method, goodwill is measured from the excess earning capacity of the firm. The governing formula is: Goodwill = Super Profit × Number of Years’ Purchase. Super profit is the difference between average maintainable profit and normal profit. Here, super profit is zero, so the calculation is 0 × any finite number of years’ purchase = 0. This indicates that the firm is earning only its normal return and no additional profit is attributable to goodwill under this method. Therefore, option A is correct. Average profit and capital are separate bases, while years’ purchase is only a multiplier, not the goodwill amount itself.