On February 1,a corporation has 40,000 shares of $1 par value common stock issued and outstanding.The corporation also has Additional Paid-in Capital of $200,000 and Retained Earnings of $200,000.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?

Question

Quizplus · Accepted Answer

80,000 shares × $0.5 par = $40,000
Common Stock $40,000 + Additional Paid-in Capital $200,000 + Retained Earnings $200,000 = $440,000

On February 1,a Corporation Has 40,000 Shares of $1 Par