1. Prepare condensed divisional income statements for the year ended December 31,20Y7, assuming that there were no support department allocations. 3. If management desires a minimum acceptable rate of return of 18%, determine the residual income for each division. 4. On the basis of operating income, t Division is the more profitable of the two divisions. However, operating income consider the amount of invested assets in each division. On the basis of residual income, the Division is the more profitable of the two divisions