7.

Tucker Companys balance sheet reflected assets of $12,000, liabilities of $4,000 and common

stock of $3,000 as of December 31, 2014. If retained earnings on December 31, 2015 balance

sheet is $8,000 and Tucker paid a $2,000 dividend during 2015, then the amount of net income

for 2015 was which of the following?

a.$1,000

b. $3,000

c.$5,000

d. None of the above