The Following Information Is Available for Kiss Company What Is Kiss Company's Residual Income?
A) $2,000

Multiple Choice

The following information is available for Kiss Company:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 100,000 \\\hline \text { Operating expenses } & \$ 94,000 \\\hline \text { Operating assets } & \$ 40,000 \\\hline \text { Stockholder's equity } & \$ 25,000 \\\hline \text { Cost of capital } & 10 \% \\\hline\end{array}$$ What is Kiss Company's residual income?

A) $2,000.
B) $2,500.
C) $3,500.
D) $4,000.