The Slazenger Company has provided the following information: Shareholders' equity on January 1, 2018 was $2,225,900.

Question

Shareholders' equity on December 31, 2018 was $2,379,300. 
Treasury stock costing $71,000 was sold for $62,000; the treasury stock was acquired during 2017. 
A property dividend was declared and distributed during 2018. The property's book value was $42,325 on the declaration date; the property's fair value was $54,485 on the declaration date and $57,500 on the distribution date. 
10,000 shares of $20 par value preferred stock were purchased and retired during 2018. 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.  
Required: What was Slazenger's 2018 net income assuming that the only other transactions impacting shareholders' equity are described above?

What will be an ideal response?

Answer 1