Data for Magnum Company are presented in the following table of rates of return on investment and residual incomes

Data for Magnum Company are presented in the following table of rates of return on investment and residual incomes:


invested  
Assets
income  
from  
Operations
rate of  
return on  
investment
Minimum  
rate of  
return
Minimum  
Acceptable  
income from  
Operations
residual 
income
$860,000 $215,000 (a) 17% (b) (c)
$540,000 (d) (e) (f ) $70,200 $27,000
$320,000 (g) 20% (h) $48,000 (i)
$460,000 $92,000 (j) 16% (k) (l)

Determine the missing items, identifying each item by the appropriate letter.


Answer:
a. 25.0% ($215,000 ÷ $860,000)   |  g. $64,000 ($320,000 × 20%)
b. $146,200 ($860,000 × 17%)      |  h. 15.0% ($48,000 ÷ $320,000)
c. $68,800 ($215,000 – $146,200) |  i. $16,000 ($64,000 – $48,000)
d. $97,200 ($70,200 + $27,000)     |  j. 20.0% ($92,000 ÷ $460,000)
e. 18.0% ($97,200 ÷ $540,000)      |  k. $73,600 ($460,000 × 16%)
f. 13.0% ($70,200 ÷ $540,000)      |  l. $18,400 ($92,000 – $73,600)