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Question
The Slazenger Company has provided the following information:
Shareholders' equity on January 1, 2012 was $2,225,900.
Shareholders' equity on December 31, 2012 was $2,379,300.
Treasury stock costing $71,000 was sold for $62,000; the treasury stock was acquired during 2011.
A property dividend was declared and distributed during 2012. The property's book value was $42,325 on the declaration date; the property's market value was $54,485 on the declaration date and $57,500 on the distribution date.
10,000 shares of $20 par value preferred stock was purchased and retired during 2012. The shares were initially issued for $25 per share and were purchased for $29 per share.
5,000 shares of $5 par value common stock were issued as the result of a small stock dividend. The market value per share was $9 at the declaration date and $9.50 at the distribution date.
Cash dividends declared and paid during the year totaled $70,000.
What was Slazenger's 2012 net income assuming that the only other transactions impacting shareholders' equity are described above?
Answer
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