Bodner Corporation Purchased an Asset Costing $475,000

Multiple Choice

Bodner Corporation purchased an asset costing $475,000. The asset has a 4 year life, no salvage value, and is depreciated on a straight line method. During the past four years, Bodner posted net income of $30,000, $25,000, $20,000 and $15,000. Given the following information, calculate the company's average accounting return over the past four years.

A) 20.15%
B) 18.32%
C) 16.45%
D) 14.51%
E) 12.63%