On January 1,2015,Chavez Company Had Beginning Balances as Follows

Multiple Choice

On January 1,2015,Chavez Company had beginning balances as follows:
Assets = $12,500
Liabilities = $4,500
Common Stock = $3,000
During 2016,Chavez paid dividends to its stockholders of $2,000.Given that ending retained earnings was $6,000,what was Chavez's net income for the 2016 accounting period?

A) $3,000
B) $5,000
C) $7,000
D) $2,000