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  3. 21. mason corporation had $1,079,000 in invested a

21. Mason Corporation had $1,079,000 in invested assets, sales of $1,222,000, income from operations amounting...

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Accounting

21. Mason Corporation had $1,079,000 in invested assets, sales of $1,222,000, income from operations amounting to $205,000, and a desired minimum rate of return of 12%.

The residual income for Mason Corporation is

a.$75,520

b.$0

c.$105,728

d.($5,100)

19.

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

Rails Division Locomotive Division Corporate Total
Cost of goods sold $45,100 $30,500
Direct operating expenses 27,100 22,800
Sales 97,500 66,400
Interest expense $2,400
General overhead 18,500
Income tax 4,200

The gross profit for the Locomotive Division is

a.$13,100

b.$35,900

c.$43,600

d.$66,400

18.

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

Rails Division Locomotive Division Corporate Total
Cost of goods sold $47,100 $28,000
Direct operating expenses 26,200 22,600
Sales 94,500 69,100
Interest expense $2,000
General overhead 19,900
Income tax 4,200

The income from operations for the Rails Division is

a.$68,300

b.$94,500

c.$21,200

d.$47,400

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