Refer to the data in the preceding exercise for Golden Gate Construction Associates. The company has two divisions: the real estate division and the construction division. The divisions’ total assets, current liabilities, and before-tax operating income for the most recent year are as follows:

Required: 

Calculate the economic value added (EVA) for each of Golden Gate Construction Associates divisions. 

Transcribed Image Text:

Before-Tax Operating Income $20,000,000 18,000,000 Current Liabilities Division Total Assets Real estate $100,000,000 60,000,000 $6,000,000 4,000,000 Construction