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Residual Income
Juniper Design Ltd. of Manchester, England is a company specializing in providing design services to residential developers. Last year the company had net operating income of $600,000 on sales of $3,000,000. The company's average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%.
Question 1: Complete the company's residual income for the year.
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