Sherwin Corporation has three business segments: paint, wallpapers, and tools. The company's assumed cost of capital is 10%. Financial information about each segment follows:

Paint segment operating income $ 650,000 Invested capital 6,500,000

Wallpaper segment operating income$ 475,000 Invested capital 3,500,000

Tools segment Segment operating income $ 900,000 Invested capital 7,500,000

(a) Prepare an analysis of residual income for each segment, and note which segment has the highest residual income.