Kelso's Balance Sheet Shows $15,000 in the Common Stock Account,$315,000

question 44

Multiple Choice

Kelso's 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 be the value of the common stock account after the split if the par value per share is $1?

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

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Definitions:

Conventional Level

A phase in Kohlberg's theory of moral development where moral reasoning is based on conforming to social rules and norms.

Formal Operational

The final stage in Jean Piaget's theory of cognitive development, marked by the ability to think abstractly, logically, and systematically.

Postconventional Level

A stage of moral development in which individuals make choices based on ethical principles.

Moral Development

The procedure by which individuals learn to adopt correct mannerisms and conduct towards fellow community members, guided by the norms, regulations, and legal frameworks of society and culture.