At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of 1,3 2, 3 $320,000. During the year, liabilities decreased by $18,000, assets increased by $65,000, and paid-in capital increased from $30,000 to $192,000. Dividends declared and paid during the year were $25,000. At the end of the year, stockholders' equity totaled $429,000.

Required:

Calculate net income (or loss) for the year. (Set up an accounting equation for the beginning of the yew; changes during the yew; and at the end of the year Enter known data and solve for the unknowns. Remember, net income [(or loss] may not be the only item affecting retained earnings.)