At the time that Kirby Company issued a 2-for-1 stock split, the company had 5,000 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 the:
A. number of outstanding shares of common stock would be 2,500.
B. balance in the common stock account would amount to $30,000.
C. balance in the retained earnings account would amount to $11,000.
D. amount of paid-in capital in excess of par-common would be equal to $150,000.
Answer: B
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