The West Division of Frede Corporation Had Average Operating Assets

Multiple Choice

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%.
-What was the West Division's residual income in December?

A) $8,800
B) $(19,328)
C) $(8,800)
D) $19,328