Explanation:

- The firm earns Rs 55,000 annually.

- The normal rate of return is given as 10%.

- Assets are valued at Rs 5,50,000 and liabilities at Rs 50,000.

- Calculate the net assets (Assets - Liabilities): Rs 5,50,000 - Rs 50,000 = Rs 5,00,000.

- The capitalized value of the firm's profits is Profit / Normal Rate of Return = Rs 55,000 / 0.10 = Rs 5,50,000.

- Goodwill is calculated as the difference between the capitalized value of profits and the net assets: Rs 5,50,000 - Rs 5,00,000 = Rs 50,000.

Answer: Option 4 - Rs 50,000