The equity sections from Hovo Corporation's 2015 and 2016 balance sheets follow.
Stockholders' Equity (December 31, 2015)
Common stock-$20 par value, 30,000 shares authorized,
17,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . $340,000
Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . . 60,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $670,000
Stockholders' Equity (December 31, 2016)
Common stock-$20 par value, 30,000 shares authorized,
19,000 shares issued, 1,000 shares in treasury . . . . . . . . . . . . . . . . . . . . $380,000
Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . 104,000
Retained earnings ($40,000 restricted by treasury stock) . . . . . . . . . . . . 295,200
..................................................................................... 779,200
Less cost of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (40,000)
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $739,200
The following transactions and events affected its equity during year 2016.
Feb. 15 Declared a $0.40 per share cash dividend, date of record five days later.
Mar. 2 Purchased treasury stock for cash.
May 15 Declared a $0.40 per share cash dividend, date of record five days later.
Aug. 15 Declared a $0.40 per share cash dividend, date of record five days later.
Oct. 4 Declared a 12.5% stock dividend when the stock's market value is $42 per share.
Oct. 20 Issued the stock dividend that was declared on October 4.
Nov. 15 Declared a $0.40 per share cash dividend, date of record five days later.
Required
1. How many common shares are outstanding on each cash dividend date?
2. What is the total dollar amount for each of the four cash dividends?
3. What is the amount of the capitalization of retained earnings for the stock dividend?
4. What is the per share cost of the treasury stock purchased?
5. How much net income did the company earn during year 2016?