Reference: 22_08 -Based on the Quarry Company Information,what Is Residual Income for

Multiple Choice

Reference: 22_08
$\begin{array}{lrr}\text { Quarry Co.}&\text { Smith}&\text { Barney}\\\text { Revenue } & \$ 412,000 & \$ 450,000 \\\text { Costs } & 380,000 & 411,000 \\\text { Average assets } & 400,000 & 600,000\end{array}$

-Based on the Quarry Company information,what is residual income for Smith and Barney?

A) Smith: $4,000; Barney: $(3,000)
B) Smith: $(3,000) ; Barney: $4,000
C) Smith: $28,000; Barney: $42,000
D) Smith: $8% ; Barney: 6.5%
E) Smith: $0; Barney: $0