What would be the effect on the financial statements

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Question - Murphy USA's fiscal 2016 selling, general and administrative expense was $122,669. If those costs had been capitalized instead of expensed, what would be the effect on the financial statements?

a. Higher net income, higher total assets, higher shareholders' equity

b. Lower net income, higher assets, higher shareholders' equity

c. Lower net income, higher total assets, higher liabilities

d. Lower cost of goods sold, higher liabilities, higher shareholders' equity

e. Lower cost of goods sold, lower liabilities, higher shareholders' equity

f. Higher net income, higher total assets, higher liabilities

Reference no: EM132846444

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