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Mason Corporation had $1,000,000 in invested assets, sales of $1,275,000, income from operations amounting to $216,000,...

Mason Corporation had $1,000,000 in invested assets, sales of $1,275,000, income from operations amounting to $216,000, and a desired minimum rate of return of 15%.

The residual income for Mason Corporation is

a.$92,400

b.($5,000)

c.$0

d.$66,000

he following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

  Rails
   Division		   Locomotive
   Division		     Corporate
   Total
Cost of goods sold $45,200     $30,700    
Direct operating expenses 26,800     20,300    
Sales 91,600     67,700    
Interest expense $3,000    
General overhead 18,300    
Income tax 4,000    

The income from operations for the Locomotive Division is

a.$16,700

b.$37,000

c.$47,400

d.$67,700

Business   Accounting   
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