Answer:
$297,000
Explanation:
In this question, we use the ending retained earning equation which is shown below:
Ending retained earning balance = Beginning retained earning balance + net income - dividends paid
$2,499,000 = $2,242,000 + net income - $40,000
$2,499,000 = $2,202,000 + net income
So, the net income = $2,499,000 - $2,202,000
= $297,000
There is no use of the common shares issued in the computation part
