On December 31,2013,Aire Dyne,Inc.reported common stock of $120,000,retained earnings of $60,000,and total stockholders' equity equal to $500,000.No unusual accounts appeared in the stockholders' equity section of its balance sheet.During the fiscal year ended December 31,2014,10,000 shares of stock were sold for $40,000,of which $10,000 represented additional paid-in capital.The company reported net income of $85,000 and declared and paid dividends of $50,000.

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The Answer of On December 31,2013,Aire Dyne,Inc.reported common stock of $120,000,retained earnings of $60,000,and total stockholders' equity equal to $500,000.No unusual accounts appeared in the stockholders' equity section of its balance sheet.During the fiscal year ended December 31,2014,10,000 shares of stock were sold for $40,000,of which $10,000 represented additional paid-in capital.The company reported net income of $85,000 and declared and paid dividends of $50,000.