A Corporation Began Operations on October 1, 2014, with 3,000

question 19

Multiple Choice

A corporation began operations on October 1, 2014, with 3,000 shares of $2 par common stock authorized. The company issued common stock on several occasions during 2014 and 2015. On December 31, 2015, the company repurchased 1,000 shares of its outstanding shares and then reissued 500 of these shares on March 1, 2016. On June 1, 2016, the company's board of directors declared a 2-for-1 stock split. As a result of this stock split, which of the following is true?

• A)Assets decreased.
• B)The number of shares issued decreased.
• C)Total liabilities decreased.
• D)Total stockholders' equity remained the same.