Dartford Company Reported the Following Financial Data for One of Its

question 86

Multiple Choice

Dartford Company reported the following financial data for one of its divisions for the year;average investment center total assets of $3,500,000;investment center income $610,000;a target income of 12% of average invested assets.The residual income for the division is:

• A)$536,800.
• B)$1,030,000.
• C)$190,000.
• D)$683,200.
• E)$493,200.

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Definitions:

Year-End Information

Financial and operational data summarizing a company's performance over the course of a fiscal year, often used for analysis and reporting purposes.

Income Statements

A financial report that shows a company's revenue and expenses, resulting in net income or loss over a specific period.

Periodic Inventory System

An inventory accounting system where inventory counts and cost of goods sold calculations are made at set intervals, such as monthly or yearly.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any cash discounts.