If operating income is 87000 average operating assets are 52

If operating income is $87.000, average operating assets are $522,000, and the minimum required rate of return is 13%, what is the residual income? o $106,140 O $48,720 O $19140 O $67860

Solution

Residual Income should be : $ 19,140

Working as below

Residual Income formula	Net operating Income - (minimum required retun on assets x average operating assets)
Residual Income formula	87000 - (13%*522000)
Residual Income formula	$19,140.00