As the Staff Accountant for NYC Investment Center #1, Compute

Essay

As the staff accountant for NYC Investment Center #1, compute the center's EVA, using the following information:
$\begin{array}{|l|l|}\hline \text { Pretax Operating income } & \$ 900,000 \\\hline \text { Income taxes } & 270,000 \\\hline \text { Total assets } & 1,500,000 \\\hline \text { Total liabilities } & 1,000,000 \\\hline \text { Longterm liabilities } & 100,000 \\\hline \text { Cost of capital } & 55 \%\\\hline \end{array}$