Division I Division II Income ₱ 02,700,000 ₱ 00,600,000 Average invested capital ₱ 18,000,000 ₱ 03,000,000 ROI 15% 20% Imputed interest rate = 10% What is the residual income of Division II?
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Jordan Company has two divisions, which reported the following results for the most recent year.
|
Division I |
Division II |
|
|
Income |
₱ 02,700,000 |
₱ 00,600,000 |
|
Average invested capital |
₱ 18,000,000 |
₱ 03,000,000 |
|
ROI |
15% |
20% |
Imputed interest rate = 10%
What is the residual income of Division II?
Group of answer choices
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₱ 300,000
₱ 900,000
₱ 294,000
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