Residual income the commercial division of galena company has operating income of $62,240 and assets of $228,000. the minimum acceptable return on assets is 7%. what is the residual income for the division?

the residual income for the division is $46280

Explanation:

given data

operating income = $62,240

assets = $228,000

return on assets = 7%

to find out

What is the residual income for the division

solution

we get Residual income for the division that is express as  

Residual Income = Income from operations - ( Minimum required return × Operating Assets)     1

put here value we get

Residual Income = $62,240 - ( 7% × $228,000 )

Residual Income = $62,240 - $15960

Residual Income = $46280

So the residual income for the division is $46280

the answer is i don't know

answer; dividing net income by 1- t ;