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The Following Information Pertains to Mary Company If Invested Capital Is Defined as Total Assets, and the r

Question 108

Multiple Choice

The following information pertains to Mary Company:  Total assets $50,000 Total current liabilities 30,000 Total expenses 60,000 Total liabilities 35,000 Total revenues 80,000\begin{array} { l r } \text { Total assets } & \$ 50,000 \\\text { Total current liabilities } & 30,000 \\\text { Total expenses } & 60,000 \\\text { Total liabilities } & 35,000 \\\text { Total revenues } & 80,000\end{array} If invested capital is defined as total assets, and the imputed interest rate is 10%, the residual income is _____.


A) $4,000
B) $15,000
C) $20,000
D) $1,600

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