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Garrott Corporations total assets were $1,505,000 at the end of Year 2 and $1,520,000 at...

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Accounting

Garrott Corporations total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.

Income Statement
For the Year Ended December 31, Year 2
Sales (all on account) $ 1,340,000
Cost of goods sold 830,000
Gross margin 510,000
Operating expenses 465,143
Net operating income 44,857
Interest expense 9,000
Net income before taxes 35,857
Income taxes (30%) 10,757
Net income $ 25,100

The companys return on equity for Year 2 is closest to:

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