Iā€™m a 45 year old business owner who also has focussed on diversifying my income streams. I have a short term vacation rental in Florida that I bought for $390k in 2012 and net rental income for the last three years has been growing steadily. 2015 I am at $70k gross right now but should end up at $80-85k with net around $45k plus we use the place about 35 nights a year.
Iā€™m a 45 year old business owner who also has focussed on diversifying my income streams. I have a short term vacation rental in Florida that I bought for $390k in 2012 and net rental income for the last three years has been growing steadily. 2015 I am at $70k gross right now but should end up at $80-85k with net around $45k plus we use the place about 35 nights a year.
Managerial accounting defines residual income in a corporate setting as the amount of leftoverĀ operating profit after all costs of capital used to generate the revenues have been paid. It is also consideredĀ the company's net operating incomeĀ or the amount of profitĀ that exceed its required rate of return. Residual income is normally used to assess the performance of a capital investment, team, department or business unit.
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