Eau Company began operations on March 1,2012.The corporate charter authorized issuance of 3,000 shares of $2 par value common stock.Eau sold all of the stock on March 1.On May 1,Eau repurchased 2,000 of the outstanding shares.On May 14,Eau sold 1,200 of the treasury shares.On June 1,Eau declared a 2-for-1 stock split.As a result of the split,what occurred?
A) Assets declined.
B) Stockholders' equity increased.
C) Stockholders' equity decreased.
D) Total stockholders' equity stayed the same.
Correct Answer:
Verified
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