Use this information for Kellman Company to answer the questions that follow.

The balance sheets at the end of each of the first $2$ years of operations indicate the

following:

Kellman Company.

Year $2,Yea{r}_1$

Total current assets

$$600,000$

$$560,000$

Total investments

Total property, plant, and equipment

Total current liabilities

$125,000$

$65,000$

Total long$-$term liabilities

$350,000$

$250,000$

Preferred $9\%$ stock, $$100$ par

$100,000,100,000$

Common stock, $$10$ par

$600,000,600,000$

Paid$-$in capital in excess of par$-$common

stock

$75,000,75,000$

Retained earnings

$310,000$

$210,000$

Using the balance sheets for Kellman Company, if net income is $$150,000$ and

interest expense is $$20,000$ for Year $2,$ what is the return on total assets for the year

$($rounded to one decimal place$)?$

$10\mathrm{.}4\%$

$8\mathrm{.}4\%$

$10\mathrm{.}5\%$

$11\mathrm{.}9\%$