<u>Answer:</u>
The correct answer option is D. D. $1,407,200.
<u>Step-by-step explanation:</u>
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.