Provide:
The Auto Division of Big Department Store had a net operating income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12 percent. Sales for the period totaled $3,000,000. The residual income for the period is:
A. $480,000
B. $360,000
C. $120,000
D. $80,000
Please provide all calculations and formulas.