The Following Data Are Extracted from the Stockholders' Equity Section

The following data are extracted from the stockholders' equity section of the balance sheet of Guthrie Corporation:

During 2011, the corporation declared and paid cash dividends of $7,500 and also declared and issued a stock dividend. There were no other changes in stock issued and outstanding during 2011. Net income for 2011 was

A) $2,300.
B) $9,800.
C) $10,800.
D) $14,800.