SHANDON COMPANY reports the following information at 31 December, 2019:

• Authorized Share Capital: 900,000 Ordinary Shares
• Par Value for Ordinary Shares = $3.00 per share
• 200,000 Ordinary shares issued at $24 per share;
• Retained Earnings: $17,500,000
• SHANDON Company has never repurchased its own shares prior to December 31, 2019.
• The following transactions take place during 2020:

August 1: SHANDON Company repurchased 50,000 ordinary shares at $50.00 per share.

October 1: SHANDON COMPANY declares a share dividend of 40% to shareholders of record on October 1. The share dividend is distributed on October 15. Treasury shares are not awarded a share or cash dividend.

November 1: SHANDON COMPANY declares a cash dividend of $1.50 per ordinary share to shareholders of record on November 15. The cash dividend is distributed on November 30.

December 15: SHANDON COMPANY re-issed 30,000 of the ordinary shares repurchased on August 1 at $10 per share.

MCQ

Assume that Retained Earnings on the Statement of Financial Position at 31 December 2020 is $16,805,000. What was SHANDON COMPANY's Net Income for 2020?

Select one:

a. $1,300,000

b. None of these answers

c. $1,000,000

d. $2,332,431

e. $1,450,000