At the time that Kaplan Company issued a 2-for-1 stock split, the company had 1,000 shares of $6 par value common stock outstanding. Stockholders' equity also contained $15,000 of additional paid in capital and $22,000 of retained earnings. Immediately after the stock split,
A) the balance in the common stock account would amount to $12,000.
B) the amount of paid-in capital would be equal to $15,000.
C) the balance in the retained earnings account would amount to $11,000.
D) the balance in the common stock account would amount to $6,000.
Correct Answer:
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