The income from operations and the amount of invested assets in each division of Magentic Zero Industries are as follows:

Income from Operations Invested Assets

Retail Division $343,200 $1,320,000

Commercial Division 320,000 1,600,000

Internet Division 176,000 800,000

Assume that management has established a 10% minimum acceptable rate of return for invested assets.

A. Determine the residual income for each division.

	Retail Division	Commercial Division	Internet Division
Income from Operation	343,200	$320,000	$176,000
Minimum amount of income from operations
Residual income