The S Corporation manufactures similar products in the United States and Australia. The U.S. and Australian operations are organized as decentralized divisions. The following information is available for 2017; ROI is calculated as operating income divided by total assets:

	U.S. Division	Australian Division
Operating income	$1,155,000	Australian $ 6,840,000
Total assets	$7,700,000	Australian $72,000,000

Both investments were made on December 31, 2016. The exchange rate at the time of Seasides investment in Australia on December 31, 2016, was 9 Aus$ = US$1. During 2017, the Australian dollar decreased steadily in value so that the exchange rate on December 31, 2017, is 10 Aus$ = US$1. The average exchange rate during 2017 is [(9 + 10) 2] = 9.5 Aus$ = US$1.

What is Australian divisions residual income (RI) in US dollars if the required rate of return on investment (calculated in U.S. dollars) is 11%.

Select one:

a. $(72,000)

b. $308,000

c. $(160,000)

d. $72,000

e. Cannot be determined from the data given

f. $160,000