Imagination Corporation Uses Residual Income to Evaluate the Performance of Its

Multiple Choice

Imagination Corporation uses residual income to evaluate the performance of its divisions. Imagination's minimum required rate of return is 11%. In April, the Commercial Products Division had average operating assets of $100,000 and net operating income of $9,400. What was the Commercial Products Division's residual income in April?

A) $(1,600) .
B) $1,600.
C) $1,034.
D) $(1,034) .