Stosch Company's Balance Sheet Reported Assets of $40,000, Liabilities of $15,000

Multiple Choice

Stosch Company's balance sheet reported assets of $40,000, liabilities of $15,000 and common stock of $12,000 as of December 31, Year 1. If Retained Earnings on the balance sheet as of December 31, Year 2, amount to $18,000 and Stosch paid a $14,000 dividend during Year 2, then the amount of net income for Year 2 was which of the following?

A) $17,000
B) $19,000
C) $13,000
D) $21,000