Working backward from ROI The Morton Company's income for the year is $200,000. Its return on investment is 12.5 percent on gross assets, 16 percent on net assets, and 20 percent on net assets employed. The company has a residual income of ($25,000). The only contra asset accounts the company has are accumulated depreciation accounts.

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REQUIRED a. Compute the company's gross assets. b. Compute the company's total amount of accumulated depreciation. c. Compute the amount of assets not employed in the business. d. Compute the target income used in computing residual income.