Answer the Following Questions Using the Information Below:
Carriage Incorporated

question 105

Multiple Choice

Answer the following questions using the information below:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2015:
$$\begin{array} { | l | r | r | r | r | } \hline & { \text { ASSETS } } && { \text { INCOME } } \\\hline & \text { Book value } & \text { Current value } & \text { Book value } & \text { Current value } \\\hline \text { Wheels } & \$ 485,000 & \$ 550,000 & \$ 120,000 & \$ 140,000 \\\hline \text { Assembly } & \$ 750,000 & \$ 1,200,000 & \$ 160,000 & \$ 172,500 \\\hline\end{array}$$ The company is currently using a 12% required rate of return.
-What are Wheels's and Assembly's return on investment based on book values,respectively?

• A) 0.21; 0.25
• B) 0.25; 0.21
• C) 0.14; 0.25
• D) 0.25; 0.14

---

Definitions:

Social Presence

A measure of how much an individual feels socially connected and present in a digital or virtual environment.

Social Stratification

The division of society into levels, classes, or groups based on socioeconomic status, power, ethnicity, or other factors.

Social Altruism

The selfless concern for the welfare of others, often leading to actions that benefit someone else at one's own expense.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.