D is corrent because the requirement is to calculate return on investment. D is corrent because return on investment is equal to net income divided by average investment ($1,100,000-$700,000)÷[($1,200,000 + $2,000,000)÷2] = $400,000÷$1,600,000 = 25%.
A is incorrect because return on investment is equal to net income divided by average investment.
A is incorrect because return on investment is equal to net income divided by average investment.
A is incorrect because return on investment is equal to net income divided by average investment.
|
