Bob’s Belts issued a 2 for 1 stock split. The balance in retained earnings at the time of the split was $45,000. There were 15,000 shares outstanding on the day of the split. The $1 par value stock had a market price of $17.25 on the day of the split. Total stockholders’ equity will increase (decrease) after the split by: Group of answer choices A)$4,500. b)$1,500. C)$25,875. D)$0. e)None of the above
Bob’s Belts issued a 2 for 1 stock split. The balance in retained earnings at the time of the split was $45,000. There were 15,000 shares outstanding on the day of the split. The $1 par value stock had a market price of $17.25 on the day of the split. Total stockholders’ equity will increase (decrease) after the split by: Group of answer choices A)$4,500. b)$1,500. C)$25,875. D)$0. e)None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bob’s Belts issued a 2 for 1 stock split. The balance in retained earnings at the time of the split was $45,000. There were 15,000 shares outstanding on the day of the split. The $1 par value stock had a market price of $17.25 on the day of the split. Total stockholders’ equity will increase (decrease) after the split by:
Group of answer choices
A)$4,500.
b)$1,500.
C)$25,875.
D)$0.
e)None of the above
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