Mustafa Corporations desired rate of return is 12 percent. Leeds Division, one of Mustafas five investment centers,

Question:

Mustafa Corporation’s desired rate of return is 12 percent. Leeds Division, one of Mustafa’s five investment centers, earned an operating income of $4,000,000 last year. The division controlled $25,000,000 of operational assets.
Required
Compute Leeds Division’s residual income.