$5$

points

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References

References

The December $31,$ Year $1,$ balance sheet for Deen Company showed total stockholders' equity of $$72,500.$ Total stockholders' equity increased by $$23,460$ between December $31,$ Year $1,$ and December $31,$ Year $2.$ During Year $2,$ Deen Company acquired $$20,000$ cash from the issue of common stock. Deen Company paid a $$7,500$ cash dividend to the stockholders during Year $2.$

Required

Determine the amount of net income or loss Deen reported on its Year $2$ income statement. $($Hint: Remember that stock issues, net income, and dividends all change total stockholders' equity.$)$

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