Answer:
The correct answer option is D. D. $1,407,200.
Step-by-step explanation:
We know that Achbar Corporation has earned $175,900 after the deduction of all the taxes and the return on equity calculated by the accountant is 12.5%.
So assuming the Achbar Corporation's stockholders' equity to be x, we can find the value of x as shown below:
[tex]12.5%[/tex] × x = [tex]$175,900[/tex]
"Percent" or "%" means "out of 100" or "per 100", therefore 12.5% can be written as:
[tex]\frac{12.5}{100}[/tex] × x = [tex]$175,900[/tex]
[tex]x=\frac{175900*100}{12.5}\\ \\x=1407200[/tex]
Therefore, Achbar Corporation's stockholders' equity to the nearest dollar is $1407200.
