The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weightedaverage cost of capital(WACC) of 8%. Rainy's corporate tax rate is 30%.

Sales-- $600,000

Operating income -- 150,000

Total assets -- 1,400,000

Current liabilities -- 200,000

What is thedivision's Residual Income(RI)?

A.

$96,000

B.

$150,000

C.

$54,000

D.

$ 24,000