Huntswell Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year 2014. Agriculture Division Industrial Division Sales revenue $140,000 $1,040,000 Operating income $ 47 comma 000 $220,000 Average total assets $ 100 comma 000 $5,540,000 Target rate of return 14.0% 14.0% Calculate the residual income for the Agriculture division.

$33,000

Explanation:

Data given

Operating income = $47,000

Target rate of return = 14%

Average assets = $100,000

The computation of  the residual income for the Agriculture division is given below:-

Residual income = Operating income - Required return

= $47,000 - ($100,000 × 14%)

= $47,000 - $14,000

= $33,000

Therefore for computing the residual income we simply deduct the required return from operating income

b, fewer problems later! good luck

years agooo ahaha. but honestly they need to update ! : )