This document discusses goodwill and methods for valuing goodwill. It defines goodwill as a firm's good reputation and name that is an intangible asset representing the value of a business above its tangible assets. Factors that affect goodwill valuation include public relations, customers, product quality and price, management skills, location, and supplier relationships. Methods for valuing goodwill include the simple average profit method, super profit method, weighted average method, and capitalization methods. An illustration is provided to demonstrate calculating goodwill using the simple average profit method.