The following facts pertain to the stockholders' equity section of the balance sheet of Vanowen Corporation:
During 2010, Vanowen declared and distributed a stock dividend. Also during 2010, Vanowen declared and paid cash dividends of $20,000. There were no changes in the number of shares of stock issued and outstanding during the period except for the change caused by the stock dividend. Calculate the amount of net income reported by Vanowen for 2010.

Question

The following facts pertain to the stockholders' equity section of the balance sheet of Vanowen Corporation:
  During 2010, Vanowen declared and distributed a stock dividend. Also during 2010, Vanowen declared and paid cash dividends of $20,000. There were no changes in the number of shares of stock issued and outstanding during the period except for the change caused by the stock dividend. Calculate the amount of net income reported by Vanowen for 2010.

Quizplus · Accepted Answer

The Answer of The following facts pertain to the stockholders' equity section of the balance sheet of Vanowen Corporation:
  During 2010, Vanowen declared and distributed a stock dividend. Also during 2010, Vanowen declared and paid cash dividends of $20,000. There were no changes in the number of shares of stock issued and outstanding during the period except for the change caused by the stock dividend. Calculate the amount of net income reported by Vanowen for 2010.

The Following Facts Pertain to the Stockholders' Equity Section of the Balance