Shep Company’s records show the following information for the current year.

Determine net income (loss) for each of the following separate situations.

a. Additional common stock of $3,000 was issued and dividends of $7,000 were paid during the current year.

b. Additional common stock of $15,000 was issued and no dividends were paid during the current year.

c. No additional common stock was issued and dividends of $12,000 were paid during the current year.

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Beglnning of Year $50,000 $22,000 End of Year $80,000 $35,000 Total assets Total liabilities