Robinson's Has 18,500 Shares of Stock Outstanding with a Par

question 73

Multiple Choice

Robinson's has 18,500 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 $18,500 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 value of the common stock account be after the split?

• A)$10,000
• B)$12,500
• C)$15,000
• D)$18,500
• E)$22,500

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