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

Calculator Residual income The income from operations and the amount of invested assets in each division of Devon Industries are as follows: Income from Operations Invested Assets Sporting Goods Division Health Care Division $138,600 122.400 99,200 660,000 510,000 620,000 Commercial Division Assume that management has established a 10% minimum acceptable rate of return for invested assets a. Determine the residual income for each division Sporting Goods Division $138,600 Health Care Division $122,400 Commercial Division $99,200 Income from operations Minimum amount of income from operations Residual income b. Which division has the most residual income? Commercial Division