The North Division of the Lyman Company reported the following data for last year: Net operating income $ 200,000 Interest expense $ 50,000 Tax expense $ 60,000 Stockholders' equity $ 250,000 Average operating assets $ 500,000 Minimum required rate of return 14 % The residual income for the North Division last year was: A. $130,000 B. $126,000 C. $90,000 D. $70,000