$$\text { Reference: 12-09 }$$ The Northern Division of Gordon Company Reported the Following Data

question 69

Multiple Choice

$$\text { Reference: 12-09 }$$ The Northern Division of Gordon Company reported the following data for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 900,000 \\\hline \text { Stockholders' equity } & \$ 320,000 \\\hline \text { Operating expenses } & \$ 700,000 \\\hline \text { Average operating assets } & \$ 500,000 \\\hline \text { Interest expense } & \$ 50,000 \\\hline \text { Tax expense } & \$ 60,000 \\\hline \text { Minimum required rate of return } & 15 \% \\\hline\end{array}$$
-The residual income for the Northern Division last year was?

• A)$90,000.
• B)$135,000.
• C)$125,000.
• D)$48,000.

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