Mason Corporation had $1,098,000 in invested assets, sales of $1,257,000, operating income amounting to $246,000, and a desired minimum return on investment of 15%. The residual income for Mason Corporation is a.$113,820 b.($6,000) c.$0 d.$81,300

Mason Corporation had $1,098,000 in invested assets, sales of $1,257,000, operating income amounting to $246,000, and a desired minimum return on investment of 15%. The residual income for Mason Corporation is a.$113,820 b.($6,000) c.$0 d.$81,300

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

Mason Corporation had $1,098,000 in invested assets, sales of $1,257,000, operating income amounting to $246,000, and a desired minimum return on investment of 15%.

The residual income for Mason Corporation is

a.$113,820

b.($6,000)

c.$0

d.$81,300

Formula Formula ROI (%) = Net Income Principal Amount × 100

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