Last year, the average stockholders' equity for Holloway Co. was $2,000,000 in which $200,000 par...

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Accounting

Last year, the average stockholders' equity for Holloway Co. was $2,000,000 in which $200,000 par value of 8% preferred stock was included. If the return on common stockholders' equity was 12.5% for the year, the net income was:
a. $225,000.
b. $241,000.
c. $234,000.
d. $250,000.

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