The following income statements for the year ending December 31 and other information are available for the Langston Division of Act Company:

\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { For the Year Ending December } 31

\begin{array}{lrr}&2018&2017\\\text { Sales } & \$ 250,000,000 & \$ 220,000,000 \\\text { Cost of goods sold } & 105,000,000 & 96,000,000\\\text { Gross margin } & 145,000,000 & 124,000,000 \\\text { Selling and administrative costs } & 25,000,000 & 22,500,000 \\\text { Research and development } & 15,600,000 & 12,400,000\\\text { Income from operations } & 104,400,000 & 89,100,000 \\\text { Less taxes on income } & 31,320,000 & 26,730,000\\\text { Net income }&\$73,080,000&\$62,370,000\\\\\text { Total assets } & \$ 650,000,000 & \$ 605,000,000 \\\text { Noninterest-bearing current liabilities } & \$ 15,000,000 & \$ 12,300,000 \\\text { Required rate of return } & 12 \% & 12 \% \\\text { Cost of capital } & 10 \% & 10 \%\end{array}

Interest expense is $0 and the tax rate is 30 percent.Langston Division amortizes intangible costs over 4 years.By how much is invested capital adjusted as it relates to computing EVA for 2018?
A)$17,900,000
B)$11,700,000
C)$6,020,000
D)$8,600,000

The Produce Division of Nature Green Has Invested Capital of $940,000

Multiple Choice

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