Payne Company Reported the Following Information for the Current Year

Multiple Choice

Payne Company reported the following information for the current year: $\begin{array}{|l|lr|}\hline \text { Sales } & \$ & 1,600,000 \\\hline \text { Average Operating Assets } & \$ & 500,000 \\\hline \text { Desired ROI } & & 14 \% \\\hline \text { Net Income } & \$ & 85,000 \\\hline\end{array}$ The company's residual income was:

A) $(15,000) .
B) $14,000.
C) $15,000.
D) $24,000.