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.Retained earnings on the December 31,Year 2 balance sheet is $18,000 and Stosch paid a $14,000 dividend during Year 2.What is the amount of net income for Year 2?

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