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

question 91

Multiple Choice

Mario's has 18,000 shares of stock outstanding with a par value of $1 per share and a market price of $4 a share. The balance sheet shows $18,000 in the common stock account, $336,000 in the paid in surplus account, and $64,000 in the retained earnings account. The firm just announced a 5-for-1 stock split. What will the paid in surplus account value be after the split?

• A)$66,000
• B)$336,000
• C)$426,000
• D)$548,000
• E)$606,000

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Definitions:

Psychological Dependence

A condition where an individual feels a compelling emotional need to continue using a substance or engaging in an activity.

Physical Dependence

A physiological state where the body has adapted to the presence of a substance, leading to withdrawal symptoms when usage is stopped or reduced.

Withdrawal

The process of pulling back or retreating, either physically or emotionally, from a situation or substance dependence.

Stimulants

Substances that increase alertness, attention, and energy by enhancing the activity of certain neurotransmitters.