Net income and comprehensive income

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Reference no: EM1363731

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 shuould have recognized a 50,000 loss on its income statement for the current year

Reference no: EM1363731

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