The Following Information Pertains to Bishop Concrete The Company's Imputed Interest Rate Is 8

question 87

Multiple Choice

The following information pertains to Bishop Concrete: $$\begin{array} { l r } \text { Sales revenue } & \$ 1,500,000 \\\text { Gross margin } & 600,000 \\\text { Income } & 90,000 \\\text { Invested capital } & 450,000\end{array}$$ The company's imputed interest rate is 8%.
The residual income is:

• A) $30,000.
• B) $36,000.
• C) $42,000.
• D) $54,000.
• E) $82,800.

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