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

question 98

Multiple Choice

At the time that Kaplan Company issued a 2-for-1 stock split, the company had 1,000 shares of $6 par value common stock outstanding. Stockholders' equity also contained $15,000 of additional paid in capital and $22,000 of retained earnings. Immediately after the stock split,

• A)the balance in the common stock account would amount to $12,000.
• B)the amount of paid-in capital would be equal to $15,000.
• C)the balance in the retained earnings account would amount to $11,000.
• D)the balance in the common stock account would amount to $6,000.

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Definitions:

Assign Probabilities

The process of allocating a likelihood or chance of occurrence to specific outcomes in a random event.

Sample Space

The collection of every potential result that can emerge from a statistical experiment.

Mutually Exclusive

A statistical term describing events that cannot occur at the same time.

Collectively Exhaustive

A condition where a set of events covers all possible outcomes, ensuring that every possible scenario is accounted for.