Izzy Division of Marine Boats Corporation Had the Following Results

Izzy Division of Marine Boats Corporation had the following results last year (in thousands) . Management's target rate of return is 10% and the weighted average cost of capital is 8%.
What is the Izzy Division's Residual Income (RI) ?

A) $ 70,000
B) $ 400,000
C) $ 700,000
D) $ 300,000