The West Division of Frede Corporation Had Average Operating Assets

question 38

Multiple Choice

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. What was the West Division's residual income in December?

• A)$8,800
• B)($19,328)
• C)($8,800)
• D)$19,328

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