Duncan Company's ROE Was 8% for 2014 What Was Duncan Company's Net Income for 2014?
A)$260,000
B)$280,000

Duncan Company's ROE was 8% for 2014.The average balances in their shareholders' equity accounts were as follows: $\begin{array}{lr}\text { Common stock, unlimited authorized, } 50,000 \text { outstanding } & \$ 1,000,000 \\\$ 2 \text { Preferred stock, 20,000 authorized, 10,000 outstanding } & \$ 350,000\\\text { Retained earnings }&\$2,250,000\end{array}$ What was Duncan Company's net income for 2014?

A) $260,000
B) $280,000
C) $288,000
D) $308,000
$\begin{array}{lrr} & \text { Common } & \text { Preferred } \\\text { Average shareholders' equity } & \$ 10,500,000 & \$ 1,200,000 \\\text { Average number of shares outstanding } & 1,000,000 & 300,000 \\\text { Dividends declared and paid } & \$ 500,000 & \$ 900,000\\\text { Current price per share }&\$32&\$48\\\text { Net Income }&\$3,400,000\end{array}$