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Calculate the residual income for the adams division

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Reference no: EM132038145

Question - Residual Income Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results:

Adams Division

Jefferson Division

Net (after-tax) income

$701,800

$340,200

Total capital employed

4,440,000

3,412,500

In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 9%. Required: Enter negative values as negative numbers.

1. Calculate the residual income for the Adams Division.

2. Calculate the residual income for the Jefferson Division.

Reference no: EM132038145

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