The equity sections from the 1989 and 1990 balance sheets of St. James Corporation appeared as follows:

On April 2, June 8, September 25, and again on December 18, 1990, the board of directors declared \(\$ 0.20\) per share dividends on the outstanding stock. The treasury stock was purchased on June 25. On October 25, while the stock was selling for \(\$ 30\) per share, the corporation declared a \(5 \%\) stock dividend on the outstanding shares. The new shares were issued on October 21.

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Under the assumption that there were no transactions affecting retained earnings other than the ones given, determine the 1990 net income of St. James Corporation. Show your calculations.

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Stockholders' Equity (As of December 31, 1989) Common stock, no-par, $10 stated value, 500,000 shares authorized. 60,000 shares issued Contributed capital in excess of stated value Total contributed capital. Retained earnings Total stockholders' equity $ 600,000 130,000 $ 730,000 595,250 $1,325,250 Stockholders' Equity (As of December 31, 1990) Common stock, no-par, $10 stated value, 500,000 shares. authorized, 62,965 shares issued of which 700 are in the treasury Contributed capital in excess of stated value Total contributed capital. Retained earnings Total Less: Cost of treasury stock Total stockholders' equity $ 629,650 189.300 $ 818,950 475,250 $1,294,200 14,500 $1,279,700