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pochemuha
3 years ago
14

The Auto Division of Big Department Store had a net operating income of $560,000, a net asset base of $4,000,000, and a required

rate of return of 12%. Sales for the period totaled $3,000,000. The residual income for the period is: a.$360,000. b.$80,000. c.$120,000. d.$480,000.
Business
1 answer:
lora16 [44]3 years ago
6 0

Answer:

b.$80,000

Explanation:

The computation of the residual income is given below;

= net operating income - (required rate of return of net asset base)

= 560,000 - (4,000,000×12%)

=  $80,000

hence, the residual income is $80,000

Therefore the option b is correct

The same is relevant and considered too

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The central bank uses a ____________________ monetary policy to offset business related economic contractions and expansions? la
Kamila [148]

Answer:

d.countercyclical

Explanation:

The central bank uses a d.countercyclical monetary policy to offset business related economic contractions and expansions. This is because monetary policy is meant to offset the natural business cycle.

7 0
3 years ago
Okun’s law suggests that:
slega [8]

Answer:

a. A 1% increase is a positive output gap decreases the unemployment rate by 0.5% 

Explanation:

Okuns law looked at the relationship between unemployment and output empirically.

It states that that for every 1% increase in the unemployment rate, positive output gap falls by roughly 2%.

I hope my answer helps you.

8 0
3 years ago
During a concealment investigation, an investigator fails to recognize that an invoice had been forged. This represents a: a. no
Ivanshal [37]

Answer:

a. non-sampling risk.

Explanation:

  • A non-sampling risk includes all the audit risk other than the sample risk and is stated as the probability of getting to an incorrect conclusion in the site of having a correct sample. Examples include the  inappropriate audit procedures.
7 0
4 years ago
Tax planning Question 6 options: guides investment activities to maximize after-tax returns over the long term for an acceptable
krok68 [10]

Answer:

guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk

Explanation:

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Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."

8 0
3 years ago
Maria, who owns a 50% interest in a restaurant, has been a material participant in the restaurant activity for the last 20 years
trapecia [35]

Answer:

a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store.

Explanation:

Maria has been in restaurant firm, for more than 5 years until the current year. So, she is an active participant. Hence, her active loss in her active activity - restaurant loss 80000 can be offset against $150,000 income  from the retail store.

3 0
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