Jake tells Murphy that he is not ready to settle down. (A Madison Avenue advertising agency wanted him for a GAP add.) Murphy realizes, while she loves Jake, that a second marriage would be another mistake.
Murphy decides that she wants to raise the baby on her own. Jake tells her that he cares for her and the baby but she cannot depend on him to be there for either of them.
Frank and Miles are waiting for Murphy to arrive (not knowing each other knows.) Corky and Jim feel left out. When she arrives, she tells the gang of her pregancy with Jake. And that Jake has left for Brazil.
At Phil's Murphy breaks the news to Jerry. Jerry takes it as poorly as every one else. Jerry is not sure what he feels but he will be there for them.
Eldon has decided that he is finished painting the townhouse and is leaving. When he learns of the baby he is estatic for Murphy and realizes he now has to create the perfect nursery.