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The Northern Division of the Smith Company had average operating assets totaling $150,000 last year.

The Northern Division of the Smith Company had average operating assets totaling $150,000 last year. If the minimum required rate of return is 12%, and if last year's net operating income at Northern was $20,000, then the residual income for Northern last year was:
A) $20,000. C) $5,000.
B) $l8,000. D) $2,000.

This question was asked on Apr 28, 2010.

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