1. Prepare condensed divisional income statements for the year ended December 31,20Y7, assuming that there were no service department cost allocations. 3. If management's minimum acceptable return is 18%, determine the nesidual income for each division. If required, use the minus sign to indicate a negatlve income. 4. Cn the basis of income from operations, tho Division is the more profitable of the two divisions. However, income from operations consider the amount of invested aseots in each division. On the basis of residual inceme, the Division is the more profitable of the twa divisions