Mason Corporation had $1,164,000 in invested assets, sales of $1,274,000, income from operations amounting to $204,000, and a desired minimum return of 12%.
The residual income for Mason Corporation is
a.$0
b.($5,600)
c.$90,048
d.$64,320

The return on investment is a measure used by the company to calculate the percentage of earnings on a particular investment made by it. the return on investment is calculated by dividing the net income by the investments.

Residual income is calculated by deducting the minimum desired return on investment from the actual return on investment.

Invested Assets = $1,164,000

Sales = $1,274,000

Operating Income = $204,000

The minimum desired rate of return on investment = 12%

The minimum desired return on investment is calculated as follows:

Minimum desired return = invested assets*desired rate of return

= 1164000*12%

= $139680

Residual income is calculated as follows:

Residual income = Actual return on investment-minimum desired return on investment

= 204000 - 139680

= $64320

Learn more about residual income:

https://brainly.com/question/27330050

#SPJ4

Mason Corporation had $1,164,000 in invested assets, sales of $1,274,000, income from operations amounting to $204,000, and a desired minimum return of 12%. The residual income for Mason Corporation is a.$0 b.($5,600) c.$90,048 d.$64,320

Respuesta :

Otras preguntas

Mason Corporation had $1,164,000 in invested assets, sales of $1,274,000, income from operations amounting to $204,000, and a desired minimum return of 12%.
The residual income for Mason Corporation is
a.$0
b.($5,600)
c.$90,048
d.$64,320