On February 1,a corporation has 30,000 shares of $1 par value common stock issued and outstanding.The corporation also has Additional Paid-in Capital of $100,000 and Retained Earnings of $100,000.On February 1,the corporation declared a 2-for-1 stock split.After the split,what is the total par value of the common stock and the total stockholders' equity,respectively?

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Quizplus · Accepted Answer

A 2-for-1 stock split doubles the number of shares and halves the par value per share, so the total par value remains $30,000. The total stockholders' equity is the sum of common stock, additional paid-in capital, and retained earnings, which remains $230,000 as the stock split does not affect total equity.

On February 1,a Corporation Has 30,000 Shares of $1 Par