Brandon Inc. ,has provided the following data for last year's operations: Brandon's residual income is:
A)$2,000
B)$4,000
C)$3,500
D)$2,500

Name: Brandon Inc. ,has provided the following data for last year's operations: Brandon's residual income is: A)$2,000 B)$4,000 C)$3,500 D)$2,500
Brand: Quizplus
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Question

Brandon Inc. ,has provided the following data for last year's operations:  Brandon's residual income is:
A)$2,000 
B)$4,000 
C)$3,500 
D)$2,500

Quizplus · Accepted Answer

Residual income = Net operating income - (Average operating assets × Minimum required rate of return)
= $6,000 ÷ ($40,000 × 10%)= $2,000