Achbar corporation has earned $175,900 after tax. the accountant calculated the return on equity as 12.5%. achbar corporation's stockholders' equity to the nearest dollar is           a. $14,720.   b. $140,720.   c. $140,720,000.   d. $1,407,200.

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:

× x =  

"Percent" or "%" means "out of 100" or "per 100", therefore 12.5% can be written as:

× x =  

Therefore, Achbar Corporation's stockholders' equity to the nearest dollar is $1407200.