Novak Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($5 par) $550,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 6,000 shares at $9 per share. June 1 Sept. 1 Sold 1.000 shares at $13 per share. Sold 1,500 shares at $10 per share. Dec. 1 Sold 1.500 shares at $7 per share. Novak Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $25,000. (a) Your answer is correct.