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[The following information applies to the questionsdisplayed below.]

The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow.

  

Stockholders’ Equity (December 31, 2013)
Common stock—$4 par value, 50,000 shares     authorized, 35,000 shares issued andoutstanding	$	140,000
Paid-in capital in excess of par value,common stock		100,000
Retained earnings		360,000
Total stockholders’ equity	$	600,000

Stockholders’ Equity (December 31, 2014)
Common stock—$4 par value, 50,000 shares     authorized, 41,000 shares issued, 5,000shares in treasury	$	164,000
Paid-in capital in excess of par value, commonstock		148,000
Retained earnings ($50,000 restricted by treasurystock)		400,000
		712,000
Less cost of treasury stock		(50,000	)
Total stockholders’ equity	$	662,000

The following transactions and events affected its equityduring year 2014.

  

Jan.	5	Declared a $0.60 per share cash dividend, date of recordJanuary 10.
Mar.	20	Purchased treasury stock for cash.
Apr.	5	Declared a $0.60 per share cash dividend, date of record April10.
July	5	Declared a $0.60 per share cash dividend, date of record July10.
July	31	Declared a 20% stock dividend when the stock’s market value is$12 per share.
Aug.	14	Issued the stock dividend that was declared on July 31.
Oct.	5	Declared a $0.60 per share cash dividend, date of recordOctober 10.

5.	How much net income did the company earn during year 2014?

Required information

[The following information applies to the questionsdisplayed below.]

The equity sections from Atticus Group’s 2013 and 2014 year-endbalance sheets follow.

  

Stockholders’ Equity (December 31, 2013)
Common stock—$4 par value, 50,000 shares     authorized, 35,000 shares issued andoutstanding	$	140,000
Paid-in capital in excess of par value,common stock		100,000
Retained earnings		360,000
Total stockholders’ equity	$	600,000

Stockholders’ Equity (December 31, 2014)
Common stock—$4 par value, 50,000 shares     authorized, 41,000 shares issued, 5,000shares in treasury	$	164,000
Paid-in capital in excess of par value, commonstock		148,000
Retained earnings ($50,000 restricted by treasurystock)		400,000
		712,000
Less cost of treasury stock		(50,000	)
Total stockholders’ equity	$	662,000

The following transactions and events affected its equityduring year 2014.

  

Jan.	5	Declared a $0.60 per share cash dividend, date of recordJanuary 10.
Mar.	20	Purchased treasury stock for cash.
Apr.	5	Declared a $0.60 per share cash dividend, date of record April10.
July	5	Declared a $0.60 per share cash dividend, date of record July10.
July	31	Declared a 20% stock dividend when the stock’s market value is$12 per share.
Aug.	14	Issued the stock dividend that was declared on July 31.
Oct.	5	Declared a $0.60 per share cash dividend, date of recordOctober 10.

3.	What is the amount of the capitalization of retained earningsfor the stock dividend?