Deck 22: Multinational Performance Measurement and Compensation

Question 1

A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a (n)

A)balanced scorecard.
B)financial report scorecard.
C)imbalanced scorecard.
D)unbalanced scorecard.
E)non-financial scorecard.

Answer 1

A

Question 2

There are three basic ingredients in profitability: investment, revenue, and debt.

Answer 2

False

Question 3

The three alternatives for increasing return on investment include increasing assets such as receivables, increasing revenues, and decreasing costs.(In all cases assume that all other items stay the same.)

Answer 3

False

Question 4

Return on investment is also called the accrual accounting rate of return.

Question 5

Economic value added is after-tax operating income minus (required rate of return times total assets).

Question 6

ROI, residual income, and economic value-added, can be used as performance measures.

Question 7

Return on sales is calculated by dividing net income by revenues.

Question 8

What the first step in selecting appropriate performance measures?

A)Decide on the level of relevance and urgency of feedback.
B)Decide on measurement alternatives for each performance measure.
C)Decide on components n each performance measure.
D)Decide on criteria targets against which to measure performance.
E)Identify and align accounting performance measures with financial goals.

Question 9

The first step in designing accounting based performance measures is to choose performance measures that align with top management's financial goals.

Question 10

Most Canadian and U.S.companies use the Sarbanes-Oxley Act (SOX)as a framework for evaluating their internal control.

Question 11

Investment turnover is calculated by dividing investment by revenues.

Question 12

Some companies present financial and non-financial performance measures for various organization units in a single report called the financial performance scorecard.

Question 13

In establishing performance measures and compensation policy, the issues are interdependent and the decision maker may proceed through a series of decisions several times before selecting the performance measure(s).

Question 14

Residual income is income plus an imputed interest charge for the investment.

Question 15

Which of the following is the LEAST typical balanced scorecard measure?

A)customer satisfaction measures
B)direct materials measures
C)innovation measures
D)time measures
E)profitability measures

Question 16

Return on investment highlights the benefits that managers can obtain by reducing their investments in current or fixed assets.

Question 17

Many common performance measures rely on internal financial and accounting information.

Question 18

Imputed costs are costs recognized in particular situations that are not regularly recognized by accrual accounting procedures.

Question 19

Pay for performance measures in the best interests of shareholders would, logically, exclude long-term achievement and deferred compensation.

Question 20

The imputed cost of an investment is the required rate of return times the investment.

Question 21

Use the information below to answer the following question(s).Berger Publishing has two divisions which operate autonomously.Their results for the past year were as follows:
The company's desired rate of return is 15%.
What are the respective residual incomes for the Toronto and Vancouver divisions?

A)$975,000; $1,125,000
B)$1,025,000; $1,125,000
C)$1,025,000; $2,375,000
D)$2,375,000; $1,025,000
E)$1,075,000; $1,125,000

Question 22

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Alpha Division's return on sales?

A)0.25
B)0.42
C)0.60
D)0.75
E)0.80

Question 23

The most popular approach to incorporating the investment base into a performance measure is

A)income on return.
B)opportunity cost.
C)return on investment.
D)residual income.
E)economic value added.

Question 24

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

What is the return on investment for the Sarnia division?

A)0.21
B)0.27
C)0.48
D)2.06
E)0.25

Question 25

Deciding if all subunits should have the same required rate of return is an example of

A)deciding on the level of relevance and urgency of feedback.
B)deciding on measurement alternatives for each performance measure.
C)deciding on components n each performance measure.
D)deciding on criteria targets against which to measure performance.
E)identifying and aligning accounting performance measures with financial goals.

Question 26

Which of the following incorporates the amount of investment into the performance measure?

A)dividend income
B)residual income
C)return on investment
D)both residual income and return on investment
E)both dividend income and residual

Question 27

Use the information below to answer the following question(s).Berger Publishing has two divisions which operate autonomously.Their results for the past year were as follows:
The company's desired rate of return is 15%.
What are the respective return on investment ratios for the Toronto and Vancouver divisions?

A)0.04; 0.58
B)0.31; 0.47
C)0.38; 0.40
D)0.77; 1.25
E)0.38; 0.45

Question 28

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

The DuPont method of profitability analysis is

A)TA - CL/operating income.
B)ROI × WACC.
C)[revenue/investment] × [income/revenue].
D)ROI/WACC.
E)ROI × RI.

Question 29

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

Keeping all other factors constant, which of the following would NOT cause an increase in the return on investment?

A)actions that increase revenues
B)actions that increase liabilities
C)actions that decrease investments
D)actions that decrease expense
E)actions that increase sales

Question 30

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What were the sales for Beta Division?

A)$4,333,333
B)$5,952,380
C)$6,500,000
D)$7,151,800
E)$6,326,787

Question 31

During the past year Badger Company had a net income of $175,000.What is the ROI if the investment is $25,000?

A)0.142
B)2.500
C)5.140
D)7.000
E)5.450

Question 32

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the total assets belonging to the Beta Division?

A)$4,333,333
B)$5,952,380
C)$6,500,000
D)$7,151,800
E)$4,654,252

Question 33

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the total assets belonging to the Alpha Division?

A)$4,333,333
B)$6,000,000
C)$6,500,000
D)$7,151,800
E)$6,434,434

Question 34

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Gamma Division's return on investment?

A)0.25
B)0.42
C)0.60
D)0.75
E)0.80

Question 35

Which of the following approaches include investment in the performance measure?

A)ROI and RI
B)ROI and ROS
C)ROS and RI
D)EVA and ROI
E)ROI, EVA, and RI

Question 36

Which of the following is TRUE concerning the ROI performance measure?

A)ROI is based on cash flow.
B)Is also called the accounting rate of return.
C)Some companies use net assets (assets minus liabilities)as the numerator.
D)The usual formulation is [total assets/ income ].
E)Net assets are sometimes used as the denominator, and net assets are sometimes used as the numerator.

Question 37

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Alpha Division's investment turnover?

A).50
B)1.0
C)2.4
D)3.5
E)0.42

Question 38

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

An automotive dealership, with a book value of $3,000,000, and total assets of $5,000,000, has a long history of earning 18%.Last year, the company earned $900,000.The owner is considering acquiring another dealership in a nearby town.If the expansion increases income by 50%, what is the maximum amount of investment the owner can make in the new dealership in order to maintain his desired 18% return?

A)$1,350,000
B)$9,000,000
C)$5,000,000
D)$3,000,000
E)$2,500,000

Question 39

Use the information below to answer the following question(s).Thacker Company has two regional offices.The information for each is as follows:

What is the Edmonton Division's return on investment?

A)0.21
B)0.27
C)0.48
D)2.06
E)0.25

Question 40

Paymaster Company provided the following information for the year just ended. What is the return on investment?

A)2.25
B)1.57
C)1.05
D)0.59
E)0.55

Question 41

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Tiller Division's investment turnover?

A).50
B)1.333
C)1.2
D)1.5
E).833

Question 42

Miller Medical Services provided the following information for its operations in the Hospital Bed Division. What is the Hospital Bed's residual income?

A)$30,000
B)$85,000
C)<$195,000>
D)$1,285,000
E)<$250,000>

Question 43

The cost of capital that is recognized in a residual income calculation is also call the

A)opportunity cost.
B)imputed cost.
C)cash accounting cost.
D)incremental cost.
E)operating income cost.

Question 44

Use the information below to answer the following question(s).The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Beta Division's investment turnover?

A).50
B)0.75
C)0.67
D)2.5
E)1.5

Question 45

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the total assets belonging to the Tractor Division?

A)$3,500,000
B)$4,000,000
C)$4,500,000
D)$5,000,000
E)$2,000,000

Question 46

What disadvantage is there in using ROI and/or RI as performance measures?

A)A manager's bonus will decrease when ROI decreases.
B)ROI may decrease when business expands if income does not increase in line with the new investment.
C)RI and ROI are both single-period measures.
D)RI is measured in absolute dollars but ROI is in percentages.
E)Imputed costs that are deducted in the RI calculation, are not recognized in accrual accounting, and are therefore not included in the operating figure used in calculating ROI.

Question 47

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Tractor Division's return on sales?

A)0.10
B)0.12
C)0.15
D)0.20
E)0.25

Question 48

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Digger Division's return on investment?

A).25
B).30
C).45
D).60
E).20

Question 49

Use the information below to answer the following question(s).Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million).The cost of equity capital is 5 percent, while the tax rate is 30 percent.Brandorf Company has profit centres in the following locations with the following data:

What is EVA for Ottawa?

A)$218,200
B)$362,200
C)$163,200
D)$480,000
E)$140,000

Question 50

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the Tractor Division's investment turnover?

A).50
B)1.0
C)2.0
D)2.5
E)3.0

Question 51

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What is the value of the total assets belonging to the Tiller Division?

A)$10,000,000
B)$12,000,000
C)$14,400,000
D)$15,000,000
E)$16,000,000

Question 52

Use the information below to answer the following question(s).Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million).The cost of equity capital is 5 percent, while the tax rate is 30 percent.Brandorf Company has profit centres in the following locations with the following data:

What is EVA for Regina?

A)$685,200
B)$342,000
C)$379,200
D)$648,000
E)$218,200

Question 53

Use the information below to answer the following question(s).Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million).The cost of equity capital is 5 percent, while the tax rate is 30 percent.Brandorf Company has profit centres in the following locations with the following data:

A company's weighted-average cost of capital [WACC] was 9.6% last year.The company has $6,000,000 of bonds payable (its only debt)with a 9.25% coupon, and has $9,000,000 in equity capital.The tax rate is 35%.What is the company's cost of debt funding?

A)6.01%
B)6.25%
C)6.50%
D)9.25%
E)12.00%

Question 54

Which of the following is NOT a reason for evaluating subunits over a multi-year time horizon?

A)Benefits of actions taken in the current period may not show up in a short-term performance measure.
B)Managers may curtail R & D or plant maintenance in order to increase short-term results.
C)Investments may actually decrease ROI and or RI in the short-term.
D)The NPV of the cash flows over the life of an investment equals [total assets ÷ ROI].
E)Investments may actually decrease ROI and or RI in the short-term, and benefits of actions taken in the current period may not show up in a short-term performance measure.

Question 55

A corporation has a required rate of return of 13% for all subsidiaries.The Calgary subsidiary earned residual income of $200,000 in year 1, and $300,000 in year 2 on an investment base of $4,500,000.What rate of return did the Calgary subsidiary earn in years 1 and 2 respectively?

A)17.4% and 19.7%
B)4.4% and 6.7%
C)13.0% and 13.0%
D)7.9% and 10.9%
E)10.00% and 13.00%

Question 56

A company has total assets of $500,000, a required rate of return of 10%, and operating income for the year was $200,000.What is the residual income?

A)$150,000
B)$200,000
C)$250,000
D)$480,000
E)$175,000

Question 57

Use the information below to answer the following question(s).The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a flood, which destroyed some of its accounting records.The main computer system was also severely damaged.The following information was salvaged:

What were the sales for the Tiller Division?

A)$9,600,000
B)$12,000,000
C)$15,000,000
D)$15,500,000
E)$14,400,000

Question 58

The Auto Division of Fran Corporation has $2.5 million in total assets and $200,000 in liabilities, while the Transportation Division has $5 million in total assets and $3 million in liabilities.What are the imputed costs of the Auto division and of the Transportation division, respectively, if the corporation has a required rate of return of 11%?

A)$275,000 and $550,000
B)$253,000 and $330,000
C)$297,000 and $880,000
D)$275,000 and $330,000
E)$200,000 and $3,000,000

Question 59

Use the information below to answer the following question(s).Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million).The cost of equity capital is 5 percent, while the tax rate is 30 percent.Brandorf Company has profit centres in the following locations with the following data:

What is EVA for St.Johns?

A)$142,200
B)$190,600
C)$310,600
D)$200,000
E)$145,000

Question 60

Which of the following performance measures is more likely to promote goal congruence?

A)inventory turnover
B)marginal income
C)residual income
D)return on investment
E)contribution margin

Question 61

Museum Corporation uses the investment centre concept for the museums that it manages.Select operating data for three of its museums for the current year are as follows:
Required:
a.Compute the return on investment for each division.
b.Which museum manager is doing best based only on ROI?
c.What other accounting performance measures are available when evaluating the managers?

Question 62

Answer the following question(s)using the information below:
Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%.Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

What is Economic Value Added ( )for the Gold Division?

A)-$283,200
B)-$82,560
C)$196,800
D)$397,440
E)-$195,200

Question 63

Hargrave Products has three divisions which operate autonomously.Their results for the current year were as follows:
The company's desired rate of return is 15 percent.Required:
a.Compute each division's ROI.Round to three decimal places.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.

Question 64

Answer the following question(s)using the information below:
Miller Medical Services provided the following information for it past year's operations in its Hospital Bed Division.
What is the Hospital Bed Division's asset turnover?

A)0.00
B)0.53
C)0.92
D)1.33
E)2.50

Question 65

Batman Abstract Company has three divisions that operate autonomously.Their results for the current year were as follows:
The company's desired rate of return is 20%.Required:
a.Compute each division's ROI.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.

Question 66

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
Which two ratios are used in the DuPont method of profitability analysis to create return on assets?

A)profit margin and asset turnover
B)asset turnover and return on investment
C)profit margin and operating leverage
D)profit margin and return on sales
E)return on sales and return on assets

Question 67

Kase Tractor Company allows its divisions to operate as autonomous units.Their results for the current year were as follows:
Required:
For each division compute the
a.return on sales
b.return on investment based on total assets employed
c.economic value added
d.residual income based on net operating income

Question 68

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
Novella Ltd.reported a return on investment of 16%, an asset turnover of 6, and income of $190,000.On the basis of this information, the company's invested capital was

A)$1,187,500.
B)$7,125,000.
C)$1,140,000.
D)$197,917.
E)$182,400.

Question 69

The Coffee Division of Canadian Products is planning the operating budget for next year.Average total assets of $1,500,000 will be used during the year and unit selling prices are expected to average $100 each.Variable costs of the division are budgeted at $400,000 while fixed costs are set at $250,000.The company's required rate of return is 18%.Required:
a.Compute the volume necessary to achieve a 20% ROI.
b.The division manager receives a bonus of 50% of the residual income.What is his anticipated bonus for next year assuming he achieves the targeted operating income in part a.and the required return is based on 18%?

Question 70

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
For the period just ended, Trident Ltd.reported profit of $22.6 million and invested capital of $250 million.Assuming an imputed interest rate of 8%, which of the following choices correctly denotes Trident's return on investment (ROI)and residual income respectively?

A)8.32%; $20.792 million
B)9.04%; $20,792 million
C)9.76%; $4.408 million
D)9.04%; $2.6 million
E)9.76%; $2.6 million

Question 71

Answer the following question(s)using the information below:
Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%.Springfield has two operating divisions, the Blue division and the Gold division, with the following financial measures for the current year:

What is Economic Value Added ( )for the Blue Division?

A)-$233,400
B)$21,960
C)$188,600
D)$433,960
E)-$63,800

Question 72

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
What is the for Bish Bash Falls?

A)$338,563
B)$305,000
C)$275,500
D)$255,500
E)$220,188

Question 73

The Tea Division of Canadian Products is planning the operating budget for next year.Average total assets of $1,700,000 will be used during the year and unit selling prices are expected to average $250 each.Variable costs of the division are budgeted at $600,000 while fixed costs are set at $450,000.The company's required rate of return is 10%.Required:
a.Compute the volume necessary to achieve a 15% ROI.
b.The division manager receives a bonus of 50% of the residual income.What is his anticipated bonus for next year assuming he achieves the targeted operating income in part a.and the required return is based on 10%?

Question 74

A division within a firm has an average return on assets employed of 12% and is considering purchasing a new asset.The new asset is expected to generate cash flows of $17,000 per year for the next seven years but these have a beta coefficient of 1.3 compared to the portfolio return on the other assets in the division.The risk free rate of return is 2%; the weighted average cost of capital is 9%; and, the cost of the new asset is $170,000.
What is the residual income?

A)$(3,400)
B)$5,100
C)$0
D)$6,800
E)$15,300

Question 75

A division within a firm has an average return on assets employed of 12% and is considering purchasing a new asset.The new asset is expected to generate cash flows of $17,000 per year for the next seven years but these have a beta coefficient of 1.3 compared to the portfolio return on the other assets in the division.The risk free rate of return is 2%; the weighted average cost of capital is 9%; and, the cost of the new asset is $170,000.
If the division manager's bonus depends on division ROI will she be likely to purchase the asset?

A)Yes, because ROI is greater than the division average return on assets employed.
B)No, because the ROI is less than the division average return on assets employed.
C)No, because the ROI is less than both the division average return on assets employed and the weighted average cost of capital.
D)Yes, because the ROI is greater than both the division average return on assets employed and the weighted average cost of capital.
E)Yes, because the net present value is positive when basing the discount rate on the weighted average cost of capital minus the risk free rate of return.

Question 76

Answer the following question(s)using the information below:
Miller Medical Services provided the following information for it past year's operations in its Hospital Bed Division.
What is the Hospital Bed Division's return on sales if income is defined as operating income?

A)0.40
B)0.53
C)0.92
D)1.33
E)2.50

Question 77

Use the information below to answer the following question(s).Brandorf Company has two sources of funds: long term debt with a market and book value of $9 million issued at an interest rate of 10 percent; and, equity capital that has a market value of $6 million (book value of $2 million).The cost of equity capital is 5 percent, while the tax rate is 30 percent.Brandorf Company has profit centres in the following locations with the following data:

A company's weighted-average cost of capital [WACC] was 9.6% last year.The company has $6,000,000 of bonds payable (its only debt)with a 9.25% coupon, and has $9,000,000 in equity capital.The tax rate is 35%.What is the company's cost of equity capital?

A)6.00%
B)6.25%
C)6.50%
D)9.25%
E)12.00%

Question 78

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
What is the for Stonybrook?

A)$1,108,000
B)$1,168,700
C)$1,315,063
D)$1,403,063
E)$994,188

Question 79

Jim's Quality Pre-owned Auto Sales Ltd.allows its divisions to operate as autonomous units.Their results for the current year were as follows:
Required:
For each division compute the
a.return on sales
b.return on investment based on total assets employed
c.economic value added
d.residual income based on net operating income

Question 80

Answer the following question(s)using the information below:
Coldbrook Company has two sources of funds: long-term debt with a market and book value of $15 million issued at an interest rate of 10%, and equity capital that has a market value of $9 million (book value of $5 million).Coldbrook Company has profit centres in the following locations with the following operating incomes, total assets, and current liabilities.The cost of equity capital is 15%, while the tax rate is 30%.
What is the for Brooksville?

A)$476,250
B)$428,000
C)$415,525
D)$390,000
E)$318,750