Problem 3

In Year 1, Kirk Company was started when it issued 1,200 shares of $5 par value common stock at a market price of $20 per share. The company repurchased 500 shares at a market price of $15 per share. During the year, Kirk Company earned $50,000 of revenue on account and $25,000 of cash revenue. Operating expenses were $40,000. The company also paid a $5,000 dividend on December 31.

What is the total amount of stockholders equity at December 31, Year 1 for Kirk Company?