Joyful Gas Company an independent oil producer in Dallas, Texas. In March, company geologist discovered a pool of oil that tripled the companys proven reserves. Prior to disclosing the new oil to the public, Joy Gas Company quietly bought most of its stock as treasury stock. After the discovery was announced, the companys stock price increased from $5 to $28.

Please discuss and answer at least two the following questions:

• What is the ethical issue in this situation?
• What accounting principle is involved?
• Who are the stakeholders in this situation?
• Analyze the facts from the following standpoints: (a) economic, (b) legal, and (c) ethical - What is the impact to each stakeholder?