The Southern Division of WDY Corporation reported net income of $2,500, operating income of $4,000, average equity of $24,000, and average operating assets of $30,000 in a recent accounting period. If Southern's required rate of return is 12%, its residual income was
A) $380
B) $(380)
C) $400
D) $1,100

Question

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The Answer of The Southern Division of WDY Corporation reported net income of $2,500, operating income of $4,000, average equity of $24,000, and average operating assets of $30,000 in a recent accounting period. If Southern's required rate of return is 12%, its residual income was
A) $380
B) $(380)
C) $400
D) $1,100

The Southern Division of WDY Corporation Reported Net Income of $2,500