Aeralia Inc What Is the Maryland Division's Return on Investment?
A) 40

question 115

Multiple Choice

Aeralia Inc.,has two regional offices.The data for each are as follows: $$\begin{array} { l r r } & \text { Maryland } & \text { New Jersey } \\\text { Revenues } & \$ 290,000 & \$ 298,000 \\\text { Operating assets } & 2,500,000 & 4,500,000 \\\text { Net operating income } & 1,000,000 & 1,200,000\end{array}$$ What is the Maryland Division's return on investment?

• A) 40%
• B) 54%
• C) 12%
• D) 3.57%

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Definitions:

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for any depreciation, amortization, or impairment costs.

Gain

The financial profit obtained from a transaction or investment, exceeding the initial cost.

Loss

Occurs when a company's expenses exceed its revenues, resulting in a negative profit.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.