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For the year ended 12/31/2013, a company reported Net Income of $50,000. On 1/1/2013, the company had 10,000 common shares outstanding and 10,000 preferred shares outstanding. The company issued 4,000 common shares on 9/30/2013; thus common shares outstanding was 14,000 for the last three months of 2013. The company paid $1,000 of preferred dividends and $6,000 of common dividends during 2013.
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