Assignment Problem: 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-$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding - $160,000
Paid-in capital in excess of par value, common stock - 120,000
Retained earnings - 320,000
Total stockholders' equity - $600,000
Stockholders' Equity (December 31):
Common stock-$4 par value, 100,000 shares authorized, 47,200 shares issued, 4,000 shares in treasury - $188,800
Paid-in capital in excess of par value, common stock - 163,200
Retained earnings ($50,000 restricted by treasury stock) - 420,000
772,000
Less cost of treasury stock - (50,000)
Total stockholders' equity - $722,000
The following transactions and events affected its equity during the year.
Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10.
July 5 Declared a $0.40 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock's market value was $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.40 per share cash dividend, date of record October 10.
Required: How much net income did the company earn this year?