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Pendant Publishing reported the following results for its Textbook Division: Sales...

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Accounting

Pendant Publishing reported the following results for its Textbook Division:

Sales $4,600,000
Operating income $690,000
Total assets $2,000,000
Current liabilities $1,100,000

Pendant's target rate of return is 17% and the weighted average cost of capital is 16%. Its effective tax rate is 40%. What is the Textbook Division's Residual Income (RI)?

$350,000

$320,000

$1,056,000

$340,000

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