Required information [The following information applies to the questions displayed below.] The equity sections from Atticus Group’s 2013...

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Required information
[The following information applies to the questionsdisplayed below.]
The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow.

  Stockholders’ Equity (December 31, 2013)
  Common stock—$4 par value, 50,000 shares
    authorized, 35,000 shares issued andoutstanding $ 140,000
   Paid-in capital in excess of par value,common stock 100,000
   Retained earnings 360,000
   Total stockholders’ equity $ 600,000
  Stockholders’ Equity (December 31, 2014)
  Common stock—$4 par value, 50,000 shares
    authorized, 41,000 shares issued, 5,000shares in treasury $ 164,000
  Paid-in capital in excess of par value, commonstock 148,000
  Retained earnings ($50,000 restricted by treasurystock) 400,000
712,000
  Less cost of treasury stock (50,000 )
  Total stockholders’ equity $ 662,000
The following transactions and events affected its equityduring year 2014.

Jan. 5 Declared a $0.60 per share cash dividend, date of recordJanuary 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.60 per share cash dividend, date of record April10.
July 5 Declared a $0.60 per share cash dividend, date of record July10.
July 31 Declared a 20% stock dividend when the stock’s market value is$12 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.60 per share cash dividend, date of recordOctober 10.
5.
How much net income did the company earn during year 2014?
Required information
[The following information applies to the questionsdisplayed below.]
The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow.

  Stockholders’ Equity (December 31, 2013)
  Common stock—$4 par value, 50,000 shares
    authorized, 35,000 shares issued andoutstanding $ 140,000
   Paid-in capital in excess of par value,common stock 100,000
   Retained earnings 360,000
   Total stockholders’ equity $ 600,000
  Stockholders’ Equity (December 31, 2014)
  Common stock—$4 par value, 50,000 shares
    authorized, 41,000 shares issued, 5,000shares in treasury $ 164,000
  Paid-in capital in excess of par value, commonstock 148,000
  Retained earnings ($50,000 restricted by treasurystock) 400,000
712,000
  Less cost of treasury stock (50,000 )
  Total stockholders’ equity $ 662,000
The following transactions and events affected its equityduring year 2014.

Jan. 5 Declared a $0.60 per share cash dividend, date of recordJanuary 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.60 per share cash dividend, date of record April10.
July 5 Declared a $0.60 per share cash dividend, date of record July10.
July 31 Declared a 20% stock dividend when the stock’s market value is$12 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.60 per share cash dividend, date of recordOctober 10.
3. What is the amount of the capitalization of retained earningsfor the stock dividend?

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5 How much net income did the company earn during year 2014 As a first step lets calculate the total cash divided during the year Please see the table below Please note that dividends are not paid on See Answer

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Required information[The following information applies to the questionsdisplayed below.]The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow. Stockholders’ Equity (December 31, 2013) Common stock—$4 par value, 50,000 shares authorized, 35,000 shares issued andoutstanding$140,000 Paid-in capital in excess of par value,common stock100,000 Retained earnings360,000 Total stockholders’ equity$600,000 Stockholders’ Equity (December 31, 2014) Common stock—$4 par value, 50,000 shares authorized, 41,000 shares issued, 5,000shares in treasury$164,000 Paid-in capital in excess of par value, commonstock148,000 Retained earnings ($50,000 restricted by treasurystock)400,000712,000 Less cost of treasury stock(50,000) Total stockholders’ equity$662,000The following transactions and events affected its equityduring year 2014. Jan.5Declared a $0.60 per share cash dividend, date of recordJanuary 10.Mar.20Purchased treasury stock for cash.Apr.5Declared a $0.60 per share cash dividend, date of record April10.July5Declared a $0.60 per share cash dividend, date of record July10.July31Declared a 20% stock dividend when the stock’s market value is$12 per share.Aug.14Issued the stock dividend that was declared on July 31.Oct.5Declared a $0.60 per share cash dividend, date of recordOctober 10.5.How much net income did the company earn during year 2014?Required information[The following information applies to the questionsdisplayed below.]The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow. Stockholders’ Equity (December 31, 2013) Common stock—$4 par value, 50,000 shares authorized, 35,000 shares issued andoutstanding$140,000 Paid-in capital in excess of par value,common stock100,000 Retained earnings360,000 Total stockholders’ equity$600,000 Stockholders’ Equity (December 31, 2014) Common stock—$4 par value, 50,000 shares authorized, 41,000 shares issued, 5,000shares in treasury$164,000 Paid-in capital in excess of par value, commonstock148,000 Retained earnings ($50,000 restricted by treasurystock)400,000712,000 Less cost of treasury stock(50,000) Total stockholders’ equity$662,000The following transactions and events affected its equityduring year 2014. Jan.5Declared a $0.60 per share cash dividend, date of recordJanuary 10.Mar.20Purchased treasury stock for cash.Apr.5Declared a $0.60 per share cash dividend, date of record April10.July5Declared a $0.60 per share cash dividend, date of record July10.July31Declared a 20% stock dividend when the stock’s market value is$12 per share.Aug.14Issued the stock dividend that was declared on July 31.Oct.5Declared a $0.60 per share cash dividend, date of recordOctober 10.3.What is the amount of the capitalization of retained earningsfor the stock dividend?

Stockholders’ Equity (December 31, 2013)
Common stock—$4 par value, 50,000 shares authorized, 35,000 shares issued andoutstanding	$	140,000
Paid-in capital in excess of par value,common stock		100,000
Retained earnings		360,000

Total stockholders’ equity	$	600,000

Stockholders’ Equity (December 31, 2014)
Common stock—$4 par value, 50,000 shares authorized, 41,000 shares issued, 5,000shares in treasury	$	164,000
Paid-in capital in excess of par value, commonstock		148,000
Retained earnings ($50,000 restricted by treasurystock)		400,000

		712,000
Less cost of treasury stock		(50,000	)

Total stockholders’ equity	$	662,000

Jan.	5	Declared a $0.60 per share cash dividend, date of recordJanuary 10.
Mar.	20	Purchased treasury stock for cash.
Apr.	5	Declared a $0.60 per share cash dividend, date of record April10.
July	5	Declared a $0.60 per share cash dividend, date of record July10.
July	31	Declared a 20% stock dividend when the stock’s market value is$12 per share.
Aug.	14	Issued the stock dividend that was declared on July 31.
Oct.	5	Declared a $0.60 per share cash dividend, date of recordOctober 10.

5.	How much net income did the company earn during year 2014?