1. Residual IncomeWashington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year’s results:
    Adams Division Jefferson Division
    Net (after-tax) income $701,800 $340,200
    Total capital employed 4,440,000 3,412,500

    In addition, Washington Company’s top management has set a minimum acceptable rate of return equal to 9%.Required:Enter negative values as negative numbers.1. Calculate the residual income for the Adams Division.
    $2. Calculate the residual income for the Jefferson Division.$