The North Division of the Lyman Company reported the following data for last year:

-The residual income for the North Division last year was:
A)$130,000
B)$126,000
C)$90,000
D)$70,000

Question

The North Division of the Lyman Company reported the following data for last year:

-The residual income for the North Division last year was:
A)$130,000 
B)$126,000 
C)$90,000 
D)$70,000

Quizplus · Accepted Answer

Residual income is calculated as the net operating income minus the product of the minimum required rate of return and the average operating assets. The correct choice is based on the given data and calculations.

The North Division of the Lyman Company Reported the Following