The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.
Stockholders’ Equity (January 1)
Common stock—$4 par value, 100,000 sharesauthorized, 35,000 shares issued and outstanding
$
140,000
Paid-in capital in excess of par value, common stock
100,000
Retained earnings
360,000
Total stockholders’ equity
$
600,000
Stockholders’ Equity (December 31)
Common stock—$4 par value, 100,000 sharesauthorized, 41,000 shares issued, 5,000 shares in treasury
$
164,000
Paid-in capital in excess of par value, common stock
160,000
Retained earnings ($60,000 restricted by treasury stock)
440,000
764,000
Less cost of treasury stock
(60,000
)
Total stockholders’ equity
$
704,000
The following transactions and events affected its equity during the year.
Jan.
5
Declared a $0.50 per share cash dividend, date of record January 10.
Mar.
20
Purchased treasury stock for cash.
Apr.
5
Declared a $0.50 per share cash dividend, date of record April 10.
July
5
Declared a $0.50 per share cash dividend, date of record July 10.
July
31
Declared a 20% stock dividend when the stock’s market value was $14 per share.
Aug.
14
Issued the stock dividend that was declared on July 31.
Oct.
5
Declared a $0.50 per share cash dividend, date of record October 10.
5. How much net income did the company earn this year?