The northern division of Aussie Estates has reported a profit of $4 million. Divisional invested capital is $2.5 million and the imputed interest rate is 12 per cent. What is the residual income?
A) $180 000
B) $1.78 million
C) $2.15 million
D) $3 700 000

Question

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The Answer of The northern division of Aussie Estates has reported a profit of $4 million. Divisional invested capital is $2.5 million and the imputed interest rate is 12 per cent. What is the residual income?
A) $180 000
B) $1.78 million
C) $2.15 million
D) $3 700 000

The Northern Division of Aussie Estates Has Reported a Profit