I have the following:

Account balance changed for 2008:

Assets - increase 400K
Liabilities - increase 150K
Capital Stock - increase 120K
Add'l paid-in capital - increase 110K

They also paid out 20,000 in dividends and assume no other changes to retained earnings, what is net income?

It is all the problem gives and it is in a textbook, so it is a pretty safe assumption it can be done.

Net Income should equal $40k.

Use A = L + OE to solve

400 = 150 + OE
250 = OE

Owners Equity Changes

Capital Stock 120
APIC 110
Dividends paid (20)
Net Income XX
= 250

xx = 40.