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Woodpecker Corp has the following operating data for the past 2 years: Year 1 10% ? Year 2 20% $25,000 10% $500,000 8% Return on Investment Residual Income Required Rate of Return Sales Asset (Capital) Turnover Assets Net Operating Income Sales Margin $400,000 ? ? ? ? ? ? The sales margin in year 2 is twice the margin for the first year. The Company had the same asset turnover in both years. 23 What is the residual income in year 1? A. $4,000 B. $8,000 C. $10,000 D. $12,000 E. None of the above