Reference no: EM132934258

The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow.

Stockholders' Equity (January 1)
Common stock-$4 par value, 100,000 shares
authorized, 35,000 shares issued and outstanding $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) Common stock-$4 par value,
100,000 shares authorized, 41,200 shares issued, 4,000 shares in
treasury $164,800
Paid-in capital in excess of par value, common stock 137,200
Retained earnings ($50,000 restricted by treasury stock) 420,000
TOTAL 722,000
Less cost of treasury stock (50,000)
Total stockholders' equity $672,000

The following transactions and events affected its equity during the year.

Jan. 5 Declared a $0.50 per share cash dividend, date of record January 10.
Mar. 20 Purchased treasury stock for cash.
Apr. 5 Declared a $0.50 per share cash dividend, date of record April 10.
July 5 Declared a $0.50 per share cash dividend, date of record July 10.
July 31 Declared a 20% stock dividend when the stock's market value was $10 per share.
Aug. 14 Issued the stock dividend that was declared on July 31.
Oct. 5 Declared a $0.50 per share cash dividend, date of record October 10.

Problem 1. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?

Problem 2. What is the per share cost of the treasury stock purchased?

Problem 3. How much net income did the company earn this year?