The following information relates to the Corner Division of Hometown Enterprises: Income for the period just ended: $1,500,000 Invested capital: $12,000,000 If the company has an imputed interest rate of 11%, Corner's residual income would be:

A. $150,000
B. $165,000.
C. $180,000.
D. $187,500.
E. None of the answers is correct.


Answer: C

Business

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