The average stockholders' equity for Horn Co. last year was $2,000,000. Included in this figure was $200,000 of preferred stock. Preferred dividends were $16,000. If the return on common stockholders' equity was 12.5% for the year, net income was:

A. $234,000

B. $241,000

C. $250,000

D. $225,000

Please show me the work and how you received the answer, Thank you very much!