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.

answer; sales of books;

answer makes less frequent trips to the bank and firms make less frequent price changes;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.