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The following information relates to the Corner Division of Hometown Enterprises: Income for the period just ended: $1,300,000 Invested capital: $11,000,000 If the company has

The following information relates to the Corner Division of Hometown Enterprises: Income for the period just ended: $1,300,000 Invested capital: $11,000,000 If the company has an imputed interest rate of 9%, Corners residual income would be:

Multiple Choice

A. $117,000.

B. $310,000.

C. $990,000.

D. Some other dollar amount other than the ones given.

E. A percentage greater than 9%.

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