The Following Information Is Available for Kiss Company What Is Kiss Company's Residual Income?
A) $2,000

Multiple Choice

The following information is available for Kiss Company:
$$\begin{array} { l c } \text { Sales } & \$ 100,000 \\\text { Operating expenses } & \$ 94,000 \\\text { Operating assets } & \$ 40,000 \\\text { Stockholder's equity } & \$ 25,000 \\\text { Cost of capital } &10\%\end{array}$$
What is Kiss Company's residual income?

A) $2,000.
B) $2,500.
C) $3,500.
D) $4,000.