1. The following data are from the equity section of the balance sheet of Candy Corp:

12/31/year 2 12/31/year 1

CS ($2 par) 102,000 100,000

Additional Paid In Capital 58,000 50,000

Retained earnings 104,600 100,000

During year 2, the company declared and paid cash dividends of $15,000 and declared and issued a stock dividend. There were no other changes in stock issued and outstanding during the year. Net income for year 2 was:

1. 4,600
2. 19,600
3. 21,600
4. 29,600