Murphy Co. had 200,000 shares outstanding of $10 par common stock on March 30 of the current year. Murphy reacquired 30,000 of those shares at a cost of $15 per share and recoded the transaction using the cost method on April 15. Murphy reissued the 30,000 shares at $20 per share and recognized a $ 50,000 gain on its income statement on May 20. Which of the following statements is correct?
A. Murphy's comprehensive income for the current year is correctly stated.
B. Murphy's net income for the current year is overstated
C. Murphy's net income for the current year is understated.
D. Murphy should have recognized as $50,000 loss on its income statement for the current year.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Murphy Co. had 200,000 shares outstanding of $10 par common stock on March 30 of the current year. Murphy reacquired 30,000 of those shares ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
An automotive magazine charges an annual subscription fee of $300, with customers prepaying the fee. Subscribers receive 50 issues for the annual fee.
Answers (1)
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $82,000 and $4,500, respectively. During Year 2, Allegheny wrote off $8,400 of Uncollectible Accounts.
Answers (1)
Shamrock manufacturing budgeted fixed overhead costs of? $2.75 per unit at an anticipated production level of? 1,350 units. in july shamrock incurred actual fixed overhead costs of? $4,400 and actually produced? 1,300 units.
Answers (1)
What snack food was legally barred from calling its product chips?
Answers (1)
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be: AVC = 4.0 - 0.0024Q + 0.000006Q2 Fixed costs are $500. If the forecasted price of the firm's output is $4.
Answers (1)
New Questions in Business
When the consumer price index rises, the typical family a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d.
Answers (1)
A magazine subscription costs $45 per year at the beginning of each year, or $115 now for a three-year subscription. If the subscriber elects to pay the $115 now, the rate of return on the investment will be nearest to:
Answers (2)
The second step in rational decision making is to: choose the solution that maximizes value. identify the criteria that are important in making the decision. evaluate the alternatives. implement the alternative.
Answers (1)
What impact will a spike in wages cause to the labor demand curve?
Answers (1)
A company issued 8%, 15-year bonds with a par value of $500,000 that pay interest semiannually. The market rate on the date of issuance was 8%.
Answers (1)