Calculating Residual Income for ABC Corporation

Residual income models (RIM) are a fundamental aspect of equity valuation, focusing on the concept of economic profit. When using the Residual Income Model to determine the intrinsic value of a company's equity, analysts consider the company's net income, the capital charge (the cost of equity multiplied by the equity capital), and the concept of sustaining assets. ABC Corporation is expected to generate a net income of $1,500,000 next year, with $10,000,000 in equity capital, and an equity cost of 12%. Based on these figures, what is the expected residual income for ABC Corporation?