Problem 2-5A (Algo) Part 2 2. Compute net income for Year 2 by comparing total equity amounts for these two years and using the following information: During Year 2, the owner Invested $36,000 additional cash in the business (in exchange for common stock) and the company paid a $25,200 cash dividend. Answer is not complete. Equity, December 31, Year 1 Add Owner's investment Add Net income $ 205,860 36,000 Less Dividends Equity, December 31, Year 2 C 241,860 (25,200) $216,660