FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Harbor Division has total assets (net of
Required:
a. Harbor computes
b. What would divisional ROI be for year 1 assuming Harbor disposes of the leased machine? (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)
c. Harbor computes residual income using beginning-of-the-year net assets. What will the divisional residual income be for year 1 assuming Harbor retains the leased machine?
d. What would divisional residual income be for year 1 assuming Harbor disposes of the leased machine?
Transcribed Image Text:a. ROI before disposal
b. ROI after disposal
c. Residual income before disposal
d. Residual income after disposal
%
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