The following account balances relate to the stockholders' equity accounts of Chipo Corp. at year-end.
|
|
2012 |
|
2011 |
| Common stock, 10,500 and 10,000 shares, |
|
|
|
|
| respectively, for 2012 and 2011 |
|
$166,580 |
|
$133,420 |
| Preferred stock, 5,000 shares |
|
105,250 |
|
105,250 |
| Retained earnings |
|
304,000 |
|
262,220 |
A small stock dividend was declared and issued in 2012. The market value of the shares was $11,100. Cash dividends were $15,770 in both 2012 and 2011. The common stock has no par or stated value.
(a) What was the amount of net income reported by Chipo Corp. in 2012?