21. Mason Corporation had $1,079,000 in invested assets, sales of $1,222,000, income from operations amounting to $205,000, and a desired minimum rate of return of 12%.

The residual income for Mason Corporation is

a.$75,520

b.$0

c.$105,728

d.($5,100)

19.

The 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	$45,100	$30,500
Direct operating expenses	27,100	22,800
Sales	97,500	66,400
Interest expense			$2,400
General overhead			18,500
Income tax			4,200

The gross profit for the Locomotive Division is

a.$13,100

b.$35,900

c.$43,600

d.$66,400

18.

The 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	$47,100	$28,000
Direct operating expenses	26,200	22,600
Sales	94,500	69,100
Interest expense			$2,000
General overhead			19,900
Income tax			4,200

The income from operations for the Rails Division is

a.$68,300

b.$94,500

c.$21,200

d.$47,400