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The Central division of Grayson Inc. had the following results last year: Sales $ 8.000,000 Cost of sales 1,600,000 Allocated corporate overhead 520,000 Selling expenses
The Central division of Grayson Inc. had the following results last year:
| Sales | $ | 8.000,000 | ||
| Cost of sales | 1,600,000 | |||
| Allocated corporate overhead | 520,000 | |||
| Selling expenses | 1,900,000 | |||
| Administrative expenses | 980,000 | |||
| Divisional assets | 6,400,000 | |||
| Cost of capital | 20 | % | ||
| Income tax rate | 30 | % | ||
What is the division's residual income?
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Computerized Accounting Using QuickBooks Pro 2020
Authors: Alvin A. Arens, D. Dewey Ward, Carol J. Borsum
6th Edition
0912503793, 9780912503790
