Robinson's Has 15,000 Shares of Stock Outstanding with a Market

question 261

Multiple Choice

Robinson's has 15,000 shares of stock outstanding with a market price of $36 per share. The balance sheet shows $330,000 in the common stock account and $189,000 in the retained earnings account. The firm just announced a 3-for-2 stock split. What will the value of the retained earnings account be after the split?

• A) $189,000
• B) $220,000
• C) $330,000
• D) $495,000
• E) $503,000

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