Problem
Presented below is certain information pertaining to Messi Company.
Assets, January 1 $240,000
Assets, December 31 230,000
Liabilities, January 1 150,000
Common stock, December 31 80,000
Retained earnings, December 31 31,000
Owner's equity, December 31 111,000
Common stock issued during the year 10,000
Dividends declared during the year 13,000
There are no owners' equity transactions other than the stock issuance and dividend declaration. The income tax rate equals 30%. Compute the amount of net income for the year.