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Problem 11-4A Analyzing changes in stockholders' equity accounts LO C3, P2, P3

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[The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.

Stockholders Equity (January 1)
Common stock$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding	$	210,000
Paid-in capital in excess of par value, common stock		170,000
Retained earnings		320,000
Total stockholders equity	$	700,000

Stockholders Equity (December 31)
Common stock$6 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury	$	247,200
Paid-in capital in excess of par value, common stock		207,200
Retained earnings ($40,000 restricted by treasury stock)		400,000
		854,400
Less cost of treasury stock		(40,000	)
Total stockholders equity	$	814,400

The following transactions and events affected its equity during the year.

Jan.		5		Declared a $0.50 per share cash dividend, date of record January 10.
Mar.		20		Purchased treasury stock for cash.
Apr.		5		Declared a $0.50 per share cash dividend, date of record April 10.
July		5		Declared a $0.50 per share cash dividend, date of record July 10.
July		31		Declared a 20% stock dividend when the stocks market value was $12 per share.
Aug.		14		Issued the stock dividend that was declared on July 31.
Oct.		5		Declared a $0.50 per share cash dividend, date of record October 10.

Problem 11-4A Part 5

5. How much net income did the company earn this year?