Working backwards from ROI data The Music Box Division of Musical Life, Ltd. reported a 1992 income of $50,000. In its annual performance report, the division showed a return on gross assets of 8 percent. The division had accumulated depreciation of $275,000 at the end of the year.

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REQUIRED a. Compute the amount of gross assets for the Music Box Division. b. Compute the division's return on net assets.