he following account balances relate to the stockholders’ equity accounts of Chipo Corp. at year end.
| 2012 | 2011 | |||
| Common stock, 10,500 and 10,000 shares, | ||||
| respectively, for 2012 and 2011 | $166,580 | $133,420 | ||
| Preferred stock, 5,000 shares | 105,250 | 105,250 | ||
| Retained earnings | 304,000 | 262,220 |
A small stock dividend was declared and issued in 2012. The market value of the shares was $11,100. Cash dividends were $15,770 in both 2012 and 2011. The common stock has no par or stated value.
(a) What was the amount of net income reported by Chipo Corp. in 2012?