Problem 17-2A

The following account balances relate to the stockholders' equity accounts of Kerbs Corp. at year-end.

2017

2016

Common stock, 10,500 and 10,000 shares,respectively, for 2017 and 2016 $155,300 $145,000 Preferred stock, 5,000 shares159,000159,000 Retained earnings305,000 249,100

A small stock dividend was declared and issued in 2017. The market value of the shares was $11,300. Cash dividends were $17,000in both 2017 and 2016. The common stock has no par or stated value.

What was the amount of net income reported by Kerbs Corp. in 2017?