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the following questions using the information below: Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods
the following questions using the information below: Carriage 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 2015: ASSETS INCOME Book value Current value Book value Current value Wheels $485,000 $550,000 $120,000 $140,000 Assembly $750,000 $1,200,000 $160,000 $172,500 The company is currently using a 12% required rate of return. What are Wheels's and Assembly's residual incomes based on book values, respectively? $28,500; $74,000 $63,500; $59.500 $61,800; $70,000 $74,000; $28,500
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