A Company Had 300,000 Shares of $10 Par Value Common

question 115

Multiple Choice

A company had 300,000 shares of $10 par value common stock outstanding.The amount of additional paid-in capital is $1,500,000,and Retained Earnings is $450,000.The company issues a 2-for-1 stock split.The market price of the stock is $13.What is the balance in the Common Stock account after this issuance?

• A) $6,000,000
• B) $6,900,000
• C) $3,000,000
• D) $4,500,000

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Definitions:

Supply And Demand

The economic model that describes how the price and quantity of goods and services are determined in a market based on the relationship between the amount available and the want for it.

Agricultural Products

Items produced through farming and agriculture, including crops, livestock, and other raw goods used for food, fabric, or industry.

Price Inelastic

A characteristic of a good or service whose demand does not significantly change when its price changes.

Agricultural Products

Goods derived from farming and the cultivation of soil, including crops and livestock.