The inventory turnover rate for Party City, Inc. is lower than the industry average for similar retail stores. The most likely explanation for this is that: Party City sells very popular items. Party City offers their customers an unusually large selection of merchandise. Party City has a just-in-time inventory system. Party City uses LIFO (assume costs are rising).

On Saturday, June 30, BD Pool Supplies sold merchandise to E. Luang on account. The sales price was $4,200, and the cost of goods sold was $3,560. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated Monday, July 2. As a result, net income for June was:

• Overstated by $640.

• Overstated by $4,200.

• Overstated by $3,560.

When treasury stock is reissued at a price above cost:

• Total paid-in capital is increased.

• The re-issuance is treated as an extraordinary item in the corporation's income statement.

• Retained earnings is increased.

• The corporation recognizes a gain to be recorded on the income statement.