Rustic Corporation Has an ROI of 21%, Total Assets Of$6,200,000

question 196

Multiple Choice

Rustic Corporation has an ROI of 21%, total assets of$6,200,000, and current liabilities of $850,000. What is Rustic Corporation's operating income?

• A)$1,123,500
• B)$4,047,619
• C)$29,523,810
• D)$1,302,000

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Definitions:

Principal of an Estate

The total assets of an estate before debts and liabilities are subtracted.

Major Repairs

Significant restorations or overhauls to property or equipment, intended to extend its useful life or enhance its value.

Ordinary Repair

Maintenance activities conducted regularly to keep assets in their current condition and prevent significant deterioration.

Taxable Estate

The total value of an individual’s estate that is subject to estate tax after deductions such as debts, funeral expenses, and charitable donations.