12. Z Division of XYZ Corp. has the following information for 2002:Assets available for$1,800,00010%Target rate of returnResidual incomeWhat was Z Division's return on investment for 2002? (M)a 15%b. 10%$270,000C. 25%d.20%Barfield

Target income = $1,800,000 x 10% = $180,000

12. Z Division of XYZ Corp. has the following information for 2002: $1,800,000 10% Assets available for Target rate of return Residual income What was Z Division's return on investment for 2002? (M) a 15% b. 10% $270,000 C. 25% d. 20% Bar

12. Z Division of XYZ Corp. has the following information for 2002: $1,800,000 10% Assets available for Target rate of return Residual income What was Z Division's return on investment for 2002? (M) a 15% b. 10% $270,000 C. 25% d. 20% Bar

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

12. Z Division of XYZ Corp. has the following information for 2002:
Assets available for
$1,800,000
10%
Target rate of return
Residual income
What was Z Division's return on investment for 2002? (M)
a 15%
b. 10%
$270,000
C. 25%
d.
20%
Barfield

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