Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 35%. Sales $10,000,000 Operating income 2,000,000 Total assets 2,500000 Current liabilities 820,000 What is the division's Residual Income (RI)?

A. $1,132,364

B. $1,750,000

C. $1,625,000

D. $500,000