A tabular analysis of the transactions made during August 2014 by Baxter Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. 
Instructions
(a) Determine how much stockholders' equity increased for the month.
(b) Compute the net income for the month.
Definitions:
Deductible Interest
Interest payments on loans (such as mortgage or student loans) that can be subtracted from gross income to reduce taxable income under certain circumstances.
Home Mortgage
A loan provided by a financial institution to a borrower for the purchase of a residential property, secured by the property itself.
Tax-Exempt Securities
Investments whose interest income is not subject to federal income tax, and in some cases, state and local taxes.
Residence Acquisition Debt
Mortgage debt incurred in acquiring, constructing, or substantially improving a principal residence, which is secured by the residence.
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