Gonzalez Company Reports the Following Information What Is the Residual Income for Gonzalez Company?
A) $30,000

question 98

Multiple Choice

Gonzalez Company reports the following information:
$\begin{array}{ll}\text { Net operating income after taxes } & \$ 200,000 \\\text { Before-tax operating income } & \$ 300,000 \\\text { Average invested capital } & \$ 500,000 \\\text { After-tax cost of capital } & 10 \%\end{array}$
What is the residual income for Gonzalez Company?

• A) $30,000
• B) $50,000
• C) $150,000
• D) $250,000

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