Multiple Choice
The Northern Division of the Smith Company had average operating assets totaling $150,000 last year. If the minimum required rate of return is 12%, and if last year's net operating income at Northern was $20,000, then the residual income for Northern last year was:
A) $20,000
B) $l8,000
C) $5,000
D) $2,000
Correct Answer:
Verified
Correct Answer:
Verified
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