Based on the following information, determine whether Appel Integrated Manufacturing (AIM) earned any residual income for its shareholders:

AIM had total assets of $3,000,000, financed with twice as much debt capital as equity capital.

AIM's pretax cost of debt is 6 percent, and cost of equity capital is 10 percent.

AIM had EBIT of $300,000 and was taxed at a rate of 40 percent.

Calculate residual income by using the method based on deducting an equity charge. (5 marks)