The following information pertains to Robert Company: Invested capital is defined as total assets minus current liabilities.The after-tax cost of capital is 20%.What is the residual income?
A)$2,600
B)$4,000
C)$12,000
D)$20,000

Question

The following information pertains to Robert Company:  Invested capital is defined as total assets minus current liabilities.The after-tax cost of capital is 20%.What is the residual income?
A)$2,600 
B)$4,000 
C)$12,000 
D)$20,000

Quizplus · Accepted Answer

The Answer of The following information pertains to Robert Company:  Invested capital is defined as total assets minus current liabilities.The after-tax cost of capital is 20%.What is the residual income?
A)$2,600 
B)$4,000 
C)$12,000 
D)$20,000

The Following Information Pertains to Robert Company: Invested Capital