The West Division of Shekarchi Corporation Had Average Operating Assets

question 59

Multiple Choice

The West Division of Shekarchi Corporation had average operating assets of $620,000 and net operating income of $80,100 in March. The minimum required rate of return for performance evaluation purposes is 14%.
-What was the West Division's residual income in March?

• A)-$6,700
• B)$6,700
• C)-$11,214
• D)$11,214

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