AJ's Has 12,400 Shares of Stock Outstanding with a Par

question 31

Multiple Choice

AJ's has 12,400 shares of stock outstanding with a par value of $1 per share and a market price of $31 a share.The balance sheet shows $12,400 in the common stock account,$67,200 in the capital in excess of par value account,and $59,300 in the retained earnings account.The firm just announced an upcoming five-for-four stock split.What will be the value of the common stock account after the split?

• A)$9,920
• B)$12,500
• C)$15,500
• D)$12,400
• E)$15,000

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Definitions:

North America

A continent located in the northern hemisphere, bounded by the Arctic Ocean to the north, the Atlantic Ocean to the east, and the Pacific Ocean to the west and south.

Competence

The ability and skillset required to effectively perform a specific task or role.

Relatedness Needs

Psychological needs involving meaningful social connections and relationships with others, emphasizing the importance of social interaction for well-being.

Autonomous Motivation

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