Holt Company Ltd Determined Residual Income for the Year of $22

question 63

Multiple Choice

Holt Company Ltd determined residual income for the year of $22 000. The company's cost of capital was 12 per cent, the investment turnover was 2.0, and capital invested was $400 000. What was Holt Company's profit during the year?

• A) $26 000
• B) $48 000
• C) $74 000
• D) $70 000