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Oksanka [162]
2 years ago
7

Dartford Company reported the following financial data for one of its divisions for the year; average investment center total as

sets of $3,700,000; investment center income $640,000; a target income of 12% of average invested assets. The residual income for the division is:
Business
1 answer:
Alik [6]2 years ago
3 0

Answer:

$196,000

Explanation:

Investment income= $6,700,000

Operating assets = $340,000

Rate of return = 12%

Residual income = [$640,000 - ($3,700,000*12%)}

Residual income = $640,000 - $444,000

Residual income = $196,000

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