Use the Information Below to Answer the Following Question(s)

question 88

Multiple Choice

Use the information below to answer the following question(s) .Ruth Cleaning Products manufactures home cleaning products.The company has two divisions, Bleach and Bleach-2.Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures.The following information is provided for the year just ended:
The company is currently using a required rate of return of 15 percent.
-What are Bleach's and Bleach-2's residual incomes, based on current values, respectively?

• A)$116,250; $37,500
• B)$110,000; $67,500
• C)$67,500; $110,000
• D)$37,500; $116,250
• E)$115,340; $80,000