Answer:
The net income for 2015 is $204
Explanation:
The computation of net income is shown below:
= Beginning stock holder equity of 2015 year + difference in common stock or issue of stock - 2015 dividend - ending stockholder equity of 2015 year
where,
Beginning stock holder equity balance of 2015 year = $2,750
Difference in common stock = 2015 common stock - 2014 common stock
= 650 - 608
= 42
2015 dividend = 646
Ending stockholder equity of 2015 year = 1,942
Now, put the values on the above equation,
So,
Net income = $2,750 + $42 - $646 - $1,942
= $204
Other things are irrelevant. So, it is not be considered in the computation part.
Hence, the net income for 2015 is $204
