On the corporation\'s balance sheet, the par value of the stock is $2, and Total
ID: 2793124 • Letter: O
Question
On the corporation's balance sheet, the par value of the stock is $2, and Total owners' equity is $1,000,000.
If the corporation has a "2-for-1" stock split, what will these values be AFTER the split?
The par value of the stock is $1, and Total owners' equity is $1,000,000.
The par value of the stock is $4, and Total owners' equity is $1,000,000.
The par value of the stock is $1, and Total owners' equity is $500,000.
The par value of the stock is $1, and Total owners' equity is $2,000,000.
a.The par value of the stock is $1, and Total owners' equity is $1,000,000.
b.The par value of the stock is $4, and Total owners' equity is $1,000,000.
c.The par value of the stock is $1, and Total owners' equity is $500,000.
d.The par value of the stock is $1, and Total owners' equity is $2,000,000.
Explanation / Answer
Par value would be =(2/2)=$1
Total owners equity would be=(1,000,000*2)=$2,000,000
Hence the correct option is D
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.