A company's retained earnings balance increased $50,000 last year;therefore,net income last year must have been $50,000.

The following account balances appear on the balance sheet of Osgood Industries:?Common Stock
(300,000 shares authorized, $100 par)$10,000,000Paid-In Capital in Excess of Par-Common Stock2,000,000Retained Earnings45,000,000?The board of directors declared a 2% stock dividend when the market price of the stock was $135 per share.?Required

The primary purpose of tort law is to punish wrongdoers.