Worsell Inc.reported the following results from last year's operations: The company's minimum required rate of return is 10%.Last year's residual income was closest to:

A) $440,000
B) $490,000
C) ($638,000)
D) ($60,000)

Residual Income

The income that remains after deducting all required costs of capital and operating expenses, representing the excess earnings generated.

Required Rate Of Return

The minimum expected yield by investors for providing capital to a company, influenced by risk and market conditions.