At the Time That Stellar Company Issued a 2-For-1 Stock

question 87

Multiple Choice

At the time that Stellar Company issued a 2-for-1 stock split, the company had 1,000 shares of $5 par value common stock outstanding. Stockholders' equity also included $14,000 of additional paid in capital in excess of par value and $20,000 of retained earnings. Immediately after the stock split,

• A) the balance in the common stock account would be $10,000.
• B) the amount of paid-in capital would be $20,000.
• C) the balance in the retained earning account would be $15,000.
• D) the balance in the common stock account would be $5,000.

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Definitions:

Pressuring

The act of attempting to persuade or coerce someone into doing something, often leading to stress or discomfort.

Identity

The qualities, beliefs, personality traits, appearance, and/or expressions that define a person or group.

Hanging Out

Informal social gatherings or spending time with friends or acquaintances without a specific agenda or activity.

Global Self-Esteem

The overall value one places on oneself as a person, encompassing feelings of self-worth and self-acceptance.