The Auto Division of Big Department Store Had a Net

question 8

Multiple Choice

The Auto Division of Big Department Store had a net income of $560,000,a net asset base of $4,000,000,and a required rate of return of 12 percent.Sales for the period totalled $3,000,000.What is the residual income for the period?

• A)$80,000
• B)$120,000
• C)$360,000
• D)$480,000

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