no. 245 I can't understand why the answer is b, not d

USB Analytie, AICPA BB: Industry Sec. AIPA MIPA PO S 244. Van Luther Com total ordinary equity of 8,650,000 at January 1, 2017 and Our w at December 31, 2017. The Company had net income for 2017 of 1.400,000 and paid total dividends of 360,000, including the annual preference dividend of 290,000. Van Luther's return on ordinary shareholders equity for 2017 is a. 10.6% b. 12.0%. C. 11.3%. d. 15.2% S L O: 7, Bloom: AP. Difficulty: Hard, Min: 3, AACSB: Analytie, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving IMA: FSA Ans: 250 El Greco Corporation's January 1, 2017 retained earnings balance was 1,950,000. El Greco earned net income for the year 510,000 and paid total dividends of 210,000. The company discovered in early 2017 that depreciation expense had been understated by 50,000 in 2016 financial statements. The December 31, 2017 retained earnings balance 1950 coot 5100- zeca a. 1.740,000. b. 2,200,000. C. 2,250,000 d. 2,300,000 Ans: b, LO: 7, Bloom: AP. Difficulty: Hard, Min: 3. AACSB: Analytic, AICPA BB: Industry/Sector, AICPA FN: Measurement, AICPA PC: Problem Solving IMA: FSA tro, eo