Consider the following worksheet with information extracted from a financial statement. 2018 reported Assests 500 000 and Liabilities 200 000. An analyst makes an adjustment for goodwill that decreases assets by $100 000 and decreases equity by $100 000. This decrease in equity has reduced profit to $50 000. Using the worksheet approach, what would be the reported return on assets?

a.

30%

b.

12.5%

c.

37.5%

d.

None of these choices.