Question - The following information pertains to Robert Company:
Total assets $50,000
Total current liabilities 10,000
Total expenses 60,000
Total liabilities 15,000
Total revenues 80,000
If invested capital is defined as total assets minus current liabilities, the economic profit (residual income) at an imputed interest rate of 20% is _____.
A. $12,000
B. $20,000
C. $4,000
D. $2,600