The following information relates to the shareholders€™ equity section of McLaren Ltd. (in thousands):

1. Early in 2010, 30,000 common shares were issued at $28 per share.
2. Midway through the year, cash dividends of $210,000 and $300,000 were paid to common shareholders and preferred shareholders, respectively.
3. Just before year end, the company acquired 15,000 of its own shares at $30 per share and cancelled them. Any difference between the price paid and the average value of the shares was recorded in retained earnings.
4. Immediately thereafter, the company issued 5,000 common shares when employees exercised options under employee stock option plans. The options had an exercise price of $20 and $25,000 of compensation expense that had been recognized during the service period for these options and recorded in contributed surplus.
Required:
a. Calculate the ending balance in common shares at the end of 2010.
b. Determine the number of common shares issued and outstanding at the end of 2010.
c. Calculate the amount of net income reported in 2010.€ƒ

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Dec. 31, 2010 Dec. 31. 2009 Share capital, preferred shares (15,000 shares issued and outstanding Share capital, common shares 4,500 5 4.500 (250,000 shares issued and outstanding at end of 2009) Contributed surplus-stock options Retained earnings otal shareholders equity 6,250 25 3,750 $14,525 6,400