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Question 1: During the last fiscal year, ZLM Inc had revenues and expenses of $420,000 and $60,000 respectively. The company had net operating assets of $800,000. The company's required rate of return for approval of projects is 15%. What was ZLM Inc's residual income for the year?
Option a) $240,000
Option b) $40,000
Option c) $30,000
Option d) $120,000
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