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

• VIM had total assets of $ 3,000,000, financed with twice as much debt capital as equity capital.
• VIM’s pretax cost of debt is 6 percent and cost of equity capital is 10 percent.
• VIM 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.