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.

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)