On January 1,Year 2,Chavez Company Had Beginning Balances as Follows

Multiple Choice

On January 1,Year 2,Chavez Company had beginning balances as follows: total assets of $12,500,total liabilities of $4,500,and common stock of $3,000.During Year 2,Chavez paid dividends to its stockholders of $2,000.Given that retained earnings amounted to $6,000 at the end of Year 2,what was Chavez's net income for Year 2?

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