Jensen's Has 18,000 Shares of Stock Outstanding with a Par

question 29

Multiple Choice

Jensen's has 18,000 shares of stock outstanding with a par value of $1 per share and a market price of $32.30 a share.The balance sheet shows $18,000 in the common stock account,$109,600 in the capital in excess of par value account,and $78,200 in the retained earnings account.The firm just announced a stock split of five-for-three.What will be the balance in the capital in excess of par value account after the split?

• A)$138,700
• B)$94,560
• C)$458,200
• D)$109,600
• E)$458,440

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