Mason Corporation had $$ \$ 1,080,000 $$ in invested assets, sales of $$ \$ 1,250,000 $$, operating income amounting to $$ \$ 201,000 $$, and a desired minimum return on investment of $$ 12 \% $$. The residual income for Mason Corporation is a. $$ \$ 99,960 $$ b. $$ \$ 0 $$ c. $$ (\$ 5,400) $$ d. $$ \$ 71,400 $$

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**Step 1:** Calculate the minimum required return using the desired rate on the invested assets.  
$$
\text{Required Return} = \$1{,}080{,}000 \times 0.12 = \$129{,}600
$$

**Step 2:** Compute the residual income by subtracting the required return from the operating income.  
$$
\text{Residual Income} = \$201{,}000 - \$129{,}600 = \$71{,}400
$$

**Answer:** $$ \$ 71,400 $$
The residual income for Mason Corporation is \$71,400.

Mason Corporation had in invested assets, sales of , operating income amounting to , and a desired minimum return on investment of .
The residual income for Mason Corporation is
a.
b.
c.
d.

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Mason Corporation had in invested assets, sales of , operating income amounting to , and a desired minimum return on investment of . The residual income for Mason Corporation is a. b. c. d.