The Auto Division of Big Department Store had a net income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12 percent.Sales for the period totaled $3,000,000.The residual income for the period is
A) $480,000.
B) $360,000.
C) $120,000.
D) $80,000.

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The Answer of The Auto Division of Big Department Store had a net income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12 percent.Sales for the period totaled $3,000,000.The residual income for the period is
A) $480,000.
B) $360,000.
C) $120,000.
D) $80,000.

The Auto Division of Big Department Store Had a Net