Fulton Corporation purchased an asset costing $525,000. The asset has a 4 year life, $90,000 salvage value, and is depreciated on a straight line method. During the past four years, Fulton posted net income of $15,000, $18,500, $20,000 and $21,000. Given the following information, calculate the company's average accounting return over the past four years. O a. 5.12% O b. 6.24% О с. 7.36% O d. 8.48% O e. 9.60%
Fulton Corporation purchased an asset costing $525,000. The asset has a 4 year life, $90,000 salvage value, and is depreciated on a straight line method. During the past four years, Fulton posted net income of $15,000, $18,500, $20,000 and $21,000. Given the following information, calculate the company's average accounting return over the past four years. O a. 5.12% O b. 6.24% О с. 7.36% O d. 8.48% O e. 9.60%
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 7BCRQ
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Transcribed Image Text:Fulton Corporation purchased an asset costing $525,000. The asset has a 4 year life, $90,000 salvage value, and is depreciated on a straight
line method. During the past four years, Fulton posted net income of $15,000, $18,500, $20,000 and $21,000. Given the following information,
calculate the company's average accounting return over the past four years.
O a. 5.12%
O b. 6.24%
О с.
7.36%
O d. 8.48%
O e. 9.60%
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