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Miami Corp. has an operating income of $108,000, average invested assets of $602,000, and a cost of capital of 7%. What is the residual income?

Miami Corp. has an operating income of $108,000, average invested assets of $602,000, and a cost of capital of 7%. What is the residual income?

A. $65,860

B. $42,140

C. $182,527

D. $108,000

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