Solved: Commercial products division residual income, Accounting Basics

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Commercial products division residual income

Scenario: Deskin Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 19%. In February, the Commercial Products Division had average operating assets of $780,000 and net operating income of $139,800. What was the Commercial Products Division's residual income in February?

a. -$8,400

b. -$26,562

c. $8,400

d. $26,562

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Accounting Basics: Commercial products division residual income

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