Cabell Products is a division of a major corporation. Last year the division had total sales of $10,400,000, net operating income of $540,800, and average operating assets of $2,392,000. The company's minimum required rate of return is 16%.

The division's residual income is closest to:

Multiple Choice

1) $540,800

2) $158,080

3) $(765,440)

4) $923,520