The Duncan Company provided the following information: The operating income before amortization during each of the three years the machine was in use was $300,000.
Compute:
a. the rate of return on the average investment for each of the three years using the net book value.
b. the rate of return on the average investment for each of the three years using the gross book value.

Question

The Duncan Company provided the following information:  The operating income before amortization during each of the three years the machine was in use was $300,000.
Compute:
a. the rate of return on the average investment for each of the three years using the net book value.
b. the rate of return on the average investment for each of the three years using the gross book value.

Quizplus · Accepted Answer

The Answer of The Duncan Company provided the following information:  The operating income before amortization during each of the three years the machine was in use was $300,000.
Compute:
a. the rate of return on the average investment for each of the three years using the net book value.
b. the rate of return on the average investment for each of the three years using the gross book value.

The Duncan Company Provided the Following Information: the Operating