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The Allentown Company Reported Operating Income of $25,000 for 2009

Question 12

Short Answer

The Allentown Company reported operating income of $25,000 for 2009. If average operating assets for the year were $80,000 and the company had a required return of 12% the company's residual income was: a. $28,000
B) $22,000
C) $15,400
D) $6,600

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