The residual income for the Division A of Magnolia Company for an income from operations of $80,000 will be $32,000.
<h3>What is residual income?</h3>
Residual Income is the total of total income from operations less the minimum acceptable rate of return on the deployed assets for such operations over a financial period.
Using the above information, it can be ascertained that the residual income will be,
Hence, the residual income will be as computed above.
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Complete Question:
One of the long-run effects of higher government budget deficits:
A. is growth in the economy's private sector at the same time the government sector shrinks.
B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.
D. an increase in the government's share of the nation's economic activity.
Answer:
D. an increase in the government's share of the nation's economic activity.
Explanation:
One of the long-run effects of higher government budget deficits is an increase in the government's share of the nation's economic activity because it would be mainly responsible for funding of the economy, thereby causing higher real Gross Domestic Product (GDP).
A government budget deficit arises when government expenses exceed it's revenue.
It usually expresses the financial health of a nation over a period of time.
Answer:
Please find the complete solution in the attached file.
Explanation:
The purpose of a lease is a rent. When you "lease" something, that's the business term of renting something ;-)
