25 Olympia Corp has the following operating data for the past 2 years: Year 1 Year 2 Return on Investment 10% 20% Residual Income 2 $25,000 Required Rate of Return 9% 10% Sales $400,000 $500,000 Asset (Capital) Turnover Assets Net Operating Income The sales margin in year 2 is twice the margin for the first year. The Company had the same asset turnover in both years. What is the residual income in year 1? A. $2,000 B. $8,000 C. $10,000 D. $12,000 E. None of the above