The Following Information Pertains to Newhart Company If Invested Capital Is Defined as Total Assets Minus Current

Multiple Choice

The following information pertains to Newhart Company: $$\begin{array} { l l } \text { Total asset } & \$ 50,000 \\\text { Total current liabilities } & 10,000 \\\text { Total expenses } & 60,000 \\\text { Total liabilities } & 15,000 \\\text { Total revenues } & 80,000\end{array}$$ If invested capital is defined as total assets minus current liabilities, the residual income at an imputed interest rate of 10% is:

A) $16,000
B) $2,600
C) $20,000
D) $4,000