Gonzalez Company reports the following information:
Net operating income after taxes $200,000
Before-tax operating income $300,000
Average invested capital $500,000
After-tax cost of capital 10%
What is the residual income for Gonzalez Company?
A) $30,000
B) $50,000
C) $150,000
D) $250,000
C
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Indicate whether the statement is true or false.