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

question 57

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,$368,000 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)$336,000
• B)$368,000
• C)$426,000
• D)$548,000
• E)$606,000

---

Definitions:

Nasopharynx

The top segment of the pharynx that links to the nasal cavity above the soft palate.

Caudal Lobe

A term often relating to the posterior division of an organ, or in some contexts, a specific part of the lung in animals.

Right Lung

The right lung is the larger of the two lungs in the human body, divided into three lobes that participate in the process of respiration.