Question
4. Foxmoor Corporation uses an imputed interest rate of 15% in the calculation of residual income. Division X, which is part of Foxmoor, had invested
4.
Foxmoor Corporation uses an imputed interest rate of 15% in the calculation of residual income. Division X, which is part of Foxmoor, had invested capital of $1,300,000 and an ROI of 18%. On the basis of this information, X's residual income was:
Multiple Choice
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$35,100.
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$39,000.
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$195,000.
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$234,000.
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None of the answers is correct.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing
5th Canadian Edition
0135004934, 978-0135004937
