Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2014:

-What are Wheels's and Assembly's residual incomes based on book values, respectively?

A) $28,500; $74,000
B) $63,500; $59.500
C) $74,000; $28,500
D) $61,800; $70,000