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1. Masco Incorporated Manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is
1. Masco Incorporated Manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2018: Wheels Assembly Book Value Current Book Current Value Value Value SAR510,000 SAR570,000 SAR120,000 SAR155,000 SAR760,000 SAR1,200,000 SAR165,000 SAR172,000 The company is the currently using a 14% required rate of return. A. What is the current Return On Income for each division? B. What is the current Residual Income for each division? Return On Investment A. B. Residual Income
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