Chatooga Company provided the following selected information about its consumer products division for 2012: $\begin{array}{lc}
\text { Desired ROI } & 8 \% \
\text { Net Income } & \$ 140,000 \
\text { Residual Income } & \$ 100,000
\end{array}$ Based on this information, the division's investment amount (amount of operating assets) was
A) $500,000.
B) $1,200,000.
C) $1,240,000.
D) $160,000.

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The Answer of Chatooga Company provided the following selected information about its consumer products division for 2012: $\begin{array}{lc}
\text { Desired ROI } & 8 \% \
\text { Net Income } & \$ 140,000 \
\text { Residual Income } & \$ 100,000
\end{array}$ Based on this information, the division's investment amount (amount of operating assets) was
A) $500,000.
B) $1,200,000.
C) $1,240,000.
D) $160,000.