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 recorded 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 a $50,000 loss on its income statement for the current year.
Answers: 2
Another question on Business
Business, 22.06.2019 01:10
Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ
Answers: 3
Business, 22.06.2019 03:00
Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.
Answers: 1
Business, 22.06.2019 03:30
Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars
Answers: 1
Business, 22.06.2019 04:00
Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.
Answers: 2
You know the right answer?
Murphy co. had 200,000 shares outstanding of $10 par common stock on march 30 of the current year. m...
Questions
Mathematics, 18.09.2019 17:00
Mathematics, 18.09.2019 17:00
Computers and Technology, 18.09.2019 17:00
Mathematics, 18.09.2019 17:00
Biology, 18.09.2019 17:00
English, 18.09.2019 17:00
Mathematics, 18.09.2019 17:00
Biology, 18.09.2019 17:00
