Morgan Shipping Held Cash of $1 Million Throughout 2017 When

Multiple Choice

Morgan Shipping held cash of $1 million throughout 2017 when the general price level decreased by over 30 percent. Morgan Shipping:

A) has more than $1 million of purchasing power at the end of the period.
B) has less than $1 million purchasing power at the end of the period.
C) must recognize the gain due to general price level increases in its income statement.
D) has the same $1 million purchasing power at the end of the period as at the beginning of the period.