The Greyduck Bus Lines Limited issues books of junior student tickets containing 20 transportation passes for $20 per book. The following information relates to books sold and tickets used:

REQUIRED
Compute the effect of these transactions on the net income from business of this company, assuming 10% of the tickets sold in a year are expected to expire at the beginning of the second year from the end of the year of sale.

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Number of books sold Number of tickets used: from Year 1 sales from Year 2 sales from Year 3 sales Year 1 2,000 25,000 Year 2 2,500 11,000 31,250 Year 3 4,000 expired 13,750 50,000