Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting
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Question:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2020:
Wheels
Assemblv
ASSETS
Book Value Current value
$500.000
$580.000
$800,000
$1,300.000
INCOME
Book value Current value
$150.000
$150.000
$170.000
$190.000
The company is currently using a 14% required rate of return.
What are Wheels' and Assembly's return on investment based on current values, respectively?
O A. 15%; 26%
O B. 30%; 21%
O C. 21%; 30%
O D. 26%; 15%
Expert Answer:
Related Book For 
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
