Chicago Clock Corporation Issued a 3-For-2 Stock Split of Its

question 90

Multiple Choice

Chicago Clock Corporation issued a 3-for-2 stock split of its common stock,which had a par value of $100 before the split.What dollar amount of retained earnings should be transferred to the common stock account?

• A)Par value of $100 per share.
• B)Market value per share on the issue date.
• C)Half of the previous total amount in the common stock account.
• D)Retained earnings aren't transferred to the common stock account.

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Definitions:

Modeling

In psychology, a therapeutic technique that involves learning through the observation of others’ behaviors and the outcomes of those behaviors.

Systematic Desensitization

An exposure therapy that uses relaxation training and a fear hierarchy to help clients with phobias react calmly to the objects or situations they dread.

Flooding

A psychological treatment method where a person is exposed to their phobia at its worst until the fear diminishes.

Specific Phobias

An irrational fear and avoidance of a particular object or situation that poses little to no actual danger.