A check for $120 arrives at Mad magazine on June 1st, 1988 for payment of a year’s subscription of magazines. Starting in July, 1988, the magazines are delivered monthly for the next twelve months. As a result of this activity: X: Net income increases in 1988 by $120

Y: earnings increase by $70 in 1988 and $50 in 1989

A. X
B. Y
C. Both
D neither

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: