Guardian Corporation has two major divisions— Healthcare Products and Pharmaceutical Products. It provides the following information for the year.
Calculate the residual income for the Healthcare Division.
A) $26,800
B) $7600
C) $114,000
D) $46,000
B) $7600
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Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should
A) not worry about what is legal or illegal as long as the corporate officers benefit in the short run B) try his best to not do anything illegal and keep documentation showing that he always acts in good faith. C) not worry about what is legal or illegal as long as it benefits the shareholders. D) not worry about what is legal or illegal as long as it benefits the directors of the corporation.
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