As a Result of a Stock Split

question 73

Multiple Choice

As a result of a stock split,

• A)an entry must be made showing the effect on stockholders' equity.
• B)the market price of the outstanding stock will increase because a split is evidence of a profitable company.
• C)the par value of the stock is changed in the reverse proportion as the stock split.
• D)the stockholders have a higher proportionate ownership of the company.

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Definitions:

AGI Deduction

Deductions that can be taken from gross income to arrive at the Adjusted Gross Income, which is used as a basis for calculating taxable income.

Art Supplies

Materials and tools used in the creation of artwork, the costs of which may be tax-deductible for professional artists or educators under certain conditions.

Home Schooling

Education where children are taught at home, typically by parents or tutors, instead of in a traditional public or private school setting.

Education Expense Deduction

A tax deduction allowing taxpayers to deduct eligible schooling and educational costs, lowering their taxable income.