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

question 3

Multiple Choice

Robinson's has 15,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $36 a share. The balance sheet shows $15,000 in the common stock account,$315,000 in the capital in excess of par account,and $189,000 in the retained earnings account. The firm just announced a 3-for-2 stock split. What will the capital in excess of par account value be after the split?

• A) $126,000
• B) $210,000
• C) $283,500
• D) $315,000
• E) $472,500

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