Problem $19-35($Algo$)$ Return on Investment; Different Measures for Total Assets $[$LO $19-1]$

Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the

following data for $2022$:

Ready estimates the useful life of each manufacturing facility to be $15$ years. As of the end of $2022,$ the plant for the health care

division is $4$ years old, while the manufacturing plant for the cosmetics division is $6$ years old. Each plant had the same cost at the time

of purchase, and both have useful lives of $15$ years with no salvage value. The company uses straight$-$line depreciation and the

depreciation charge is $$70,000$ per year for each division. The manufacturing facility is the only long$-$lived asset of either division.

Current assets are $$302,000$ in each division.

An index of construction costs, replacement costs, and liquidation values for the manufacturing facilities for the period that Ready has

been operating is as follows:

Required:

$($Round your answers to $2$ decimal places.$)$

Compute return on investment $($ROI$)$ for each division using the historical cost of divisional assets $($including current assets$)$ as the

investment base.

Compute ROI for each division, incorporating current$-$cost estimates as follows:

a$.$ Gross book value $($GBV$)$ of long$-$lived assets plus book value of current assets.

b$.$ GBV of long$-$lived assets restated to current cost using the index of construction costs plus book value of current assets. $($Do not

round intermediate calculations. Round dollar values to the nearest whole dollar.$)$

c$.$ Net book value $($NBV$)$ of long$-$lived assets restated to current cost using the index of construction costs plus book value of current

assets. $($Do not round intermediate calculations. Round dollar values to the nearest whole dollar.$)$

d$.$ Current replacement cost of long$-$lived assets plus book value of current assets.

e$.$ Current liquidation value of long$-$lived assets plus book value of current assets.