Popes Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.

Accounts receivable	$	31,000
Depreciation expense		10,900
Land		26,300
Cost of goods sold		85,500
Retained earnings		71,100
Cash		10,100
Equipment		70,000
Supplies		5,600
Accounts payable		20,500
Service revenue		26,800
Interest expense		3,800
Common stock		5,000
Income tax expense		19,100
Accumulated depreciation		40,000
Long-term debt		37,000
Supplies expense		13,200
Merchandise inventory		30,600
Sales revenue		163,000

a. Calculate the net income (or loss) for the year ended December 31, 2016.

b. If $19,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?