The Magazine Division of Continental Publishing Company had the following financial data for the year: Assets available for use $1,000,000 Book Value $1,500,000 Market Value Residual income $100,000 Return on investment 15% Refer to Continental Publishing Company. What was the Magazine Division's segment income?
a. $150,000
b. $100,000
c. $250,000
d. $ 50,000
A
Segment Income = ROI * BV of Total Assets
= 0.15 * $1,000,000
= $150,000
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