Ille outstanding capital stock of Robbins Corporation consisted of 3,000 shares of 10% pre- ferred stock, $250 par value, and 30,000 shares of no-par common stock with a stated value of S250_ Ille preferred was issued at $412, the common at $480 per share. On January I, 2007, the retained earnings of the company were $250,000. During the succeeding five years, net income was as follows: $767 2011 No dividends were in arrears as of January I, 2007, and during the five years 2007 2011 , the board of directors declared dividends in each year equal to net income of the year.