Deskin Corporation Uses Residual Income to Evaluate the Performance of Its

Multiple Choice

Deskin Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 19%. In February, the Commercial Products Division had average operating assets of $780,000 and net operating income of $139,800. What was the Commercial Products Division's residual income in February?

A) -$8,400
B) -$26,562
C) $8,400
D) $26,562