Payne Company reported the following information for the current year: Sales $ 1,600,000 Average Operating Assets $

Question:

Payne Company reported the following information for the current year: Sales $ 1,600,000 Average Operating Assets $ 500,000 Desired ROI 14 % Net Income $ 85,000 The company's residual income was: Multiple Choice
a. $(15,000).
b. $14,000.
c. $15,000.
d. $24,000.