Answer the Following Question(s)using the Information Below

question 141

Multiple Choice

Answer the following question(s) using the information below:
Carriage Ltd.manufactures baby 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 the year just ended:
The company is currently using a 12% required rate of return.
-What are Wheels's and Assembly's residual incomes based on book values, respectively?

• A)$74,000; $28,500
• B)$61,800; $70,000
• C)$63,500; $59.500
• D)$28,500; $74,000
• E)$101,800; $70,000