The Basketball Division of Thunder Sports Enterprises reported the following financial data for the year: Assets available for use $1,200,000 Book Value $1,500,000 Market Value Residual income $108,000 Return on investment 14% Refer to Thunder Sports Enterprises. What was the Basketball Division's segment income?

a. $168,000
b. $125,000
c. $269,000
d. $ 19,000


A
Segment Income = ROI * BV of Total Assets
= 0.14 * $1,200,000
= $168,000

Business

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