Thornton Technologies, Inc. has three divisions. Thornton has a desired rate of return of 11.5 percent. The operating assets and income for each division are as follows:

Divisions	Operating Assets				Operating Income
Printer	$	700,000			$	112,000
Copier		970,000				100,880
Fax		520,000				69,160
Total	$	2,190,000			$	282,040

Thornton headquarters has $136,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROIs:

	Expected ROIs for
Divisions	Additional Investments
Printer	13.0	%
Copier	12.0	%
Fax	11.0	%

Required

G1. Calculate the residual income at the corporate (headquarters) level before the additional investment.

G2. (1) At the corporate (headquarters) level before the additional investment. (Printer, Copier, Fax)

(2) At the division level before the additional investment. (Printer, Copier, Fax)

(3) At the investment level. (Printer, Copier, Fax)

(4) At the division level after the additional investment. (Printer, Copier, Fax)