The Following Information Is Available for Kiss Company What Is Kiss Company's Residual Income?
A) $2,000

question 147

Multiple Choice

The following information is available for Kiss Company:
$$\begin{array} { l c } \text { Sales } & \$ 100,000 \\\text { Operating expenses } & \$ 94,000 \\\text { Operating assets } & \$ 40,000 \\\text { Stockholder's equity } & \$ 25,000 \\\text { Cost of capital } &10\%\end{array}$$
What is Kiss Company's residual income?

• A) $2,000.
• B) $2,500.
• C) $3,500.
• D) $4,000.

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