The Northern Division of the Smith Company had average operating assets totalling $150,000 last year. If the minimum required rate of return is 12% and if last year's net operating income at Northern was $20,000, then the residual income for Northern last year was? 

a. $20,000 

b. $18,000 

c. $2,000 

d. $5,000

Answer rating: 100% (QA)

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