Bacon, Inc., has the following stockholders' equity section in its May 31, 2016, comparative balance sheets: May 31, 2016 April 30, 2016 Paid-in capital Preferred stock, $120 par value, 9%, cumulative, 50,000 shares authorized, 35,000 shares Common stock, $5 par value, 250,000 shares authorized, 150,000 and 135,000 shares issued Additional paid-in capital issued and outstanding $4,200,000 4,200,000 675,000 5,805,000 8,660,000 (1,037,000) ? $18,303,000 respectively Retained earnings Less: Treasury common stock, at cost; 18,000 shares and 17,000 shares, respectively 6,495,000 9,050,000 (1101,000) Total stockholders' equity value 5.00 points Required information d. During May, dividends on preferred stock equal to one-half of the 2016 dividend requirement were declared and paid. There were no common dividends declared or paid in May. Calculate net income for May Net income Required information 5.00 points e-2. Assume that on June 1 the board of directors declared a cash dividend of $0.30 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15 The June 30, 2016, balance sheet will reflect a reduction in retained earnings and an increase in dividends payable for the same amount. The June 30, 2016, balance sheet will reflect a reduction in dividends payable and an increase in retained earnings for the same amount. Dividends declared have no effect on the income statement Dividends declared will result in a reduction of net profit