Assume the Solar Division of the Sun Energy Company had the following results last year (in thousands). Managament's target rate of return is 15% and the weighted average cost of capital 20%. Its effective tax rate is 35%

Sales = $13,000,000

Operating income: $3,900,000

Total assets: $3,000,000

Current Liabilities: 770,000

What is the division's Residual income (RI)?

A) $3,450,000

B) $3,300,000

C) $1,207,500

D) $4,550,000