On December 1, Gilligan Ltd.declared a 2 for 1 stock split when the market value was $40 per share.Prior to the split, there were 200,000 shares issued and outstanding.After the stock split, the number of shares outstanding and the share capital balance were: $\begin{array}{ll}\text { Shares }&\text { Capital }\
\text { a. } 200,000 & \$ 8,000,000 \
\text { b. } 200,000 & \$ 4,000,000 \
\text { c. } 400,000 & \$ 8,000,000 \
\text { d. } 400,000 & \$ 4,000,000
\end{array}$

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The Answer of On December 1, Gilligan Ltd.declared a 2 for 1 stock split when the market value was $40 per share.Prior to the split, there were 200,000 shares issued and outstanding.After the stock split, the number of shares outstanding and the share capital balance were: $\begin{array}{ll}\text { Shares }&\text { Capital }\
\text { a. } 200,000 & \$ 8,000,000 \
\text { b. } 200,000 & \$ 4,000,000 \
\text { c. } 400,000 & \$ 8,000,000 \
\text { d. } 400,000 & \$ 4,000,000
\end{array}$