The equity sections from the 1989 and 1990 balance sheets of Teller Industries, Inc., appeared as follows:

On April 8, July 5, September 20, and again on December 15, 1990, the board of directors declared \(\$ 0.40\) per share dividends on the outstanding stock. The treasury stock was purchased on July 25. On September 20, while the stock was selling for \(\$ 25\) per share, the corporation declared a \(10 \%\) stock dividend on the outstanding shares. The new shares were issued on October 19.
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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 Teller Industries, Inc. Show your calculations.

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Stockholders' Equity (As of December 31, 1989) Common stock, $10 par value, 600.000 shares authorized, 80,000 shares issued. Contributed capital in excess of par value, common stock Total contributed capital Retained earnings. Total stockholders' equity. $ 800,000 180,000 $ 980,000 750,250 $1,730,250 Stockholders' Equity (As of December 31, 1990) Common stock, $10 par value, 600.000 shares authorized 87,920 shares issued of which 800 are in the treasury Contributed capital in excess of par value, common stock Total contributed capital Retained earnings, of which $17,600 is restricted Total Less: Cost of treasury stock. Total stockholders' equity. $ 879,200 298,800 $1,178,000 675,120 $1,853,120 17,600 $1,835,520