Shrewsbury Incorporated reported the following results from last year's operations: At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
The company's minimum required rate of return is 14%.Last year's residual income was closest to:

A) $504,000
B) ($56,000)
C) $544,000
D) ($475,200)

Residual Income

The income that remains after subtracting all required costs of capital from operating income, a measure of profitability.

Minimum Required Rate

The lowest rate of return that an investment must yield to be considered acceptable, often tied to the cost of capital or inflation.

Investment Opportunity

A financial investment or asset that has the potential to yield returns or profits.