Gifts and More (G&M) is a small private business that deals in gift items. The company has $18,000 in working capital requirements and fixed assets with a fair value of $190,000. G&Ms required returns on working capital, fixed assets, and intangible assets are estimated as 2.5%, 8%, and 12%, respectively. Normalized earnings for the year just ended amounted to $91,000 and residual income is expected to grow at 3% per year.

The company's excess earnings are closest to:

Select one:

a. $84,810

b. $75,350

c. $81,650