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 included $15,000 of paid in capital in excess of par value-common and $22,000 of retained earnings. Which of the following statements regarding the impact of the stock split is true?
A. The amount of paid-in capital in excess of par-common will become $150,000.
B. The balance of the common stock account will be $30,000.
C. The balance in the retained earnings account will become $11,000.
D. The number of outstanding shares of common stock will be 2,500.
Answer: B
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