Paulson Company had the following on the dates indicated:

Paulson had no stock transactions in 2018, so the change in stockholders’ equity for 2018 was due to net income and dividends. If dividends were $75,000, how much was Paulson’s net income for 2018? Use the accounting equation and the statement of retained earnings.
a. $92,000
b. $242,000
c. $167,000
d. $317,000

Select the best choice from among the possible answers given.

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12/31/18 12/31/17 $ 530,000 36,000 $ 350,000 Total assets Total liabilities 23,000