2. A corporation has 50,000 shares of $25 par stock outstanding that has a current market value of $150 per share. If the corporation issues a 5-for-1 stock split, the market value of the stock after the split will be approximately

A. $25

B. $150

C. $5

D. $30

3. Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98.5, what is the amount of gain or loss on redemption?

A. $500 loss

B. $15,500 loss

C. $15,500 gain

D. $500 gain

4. Changes in the value of available for sale securities

A. are reported as part of stockholders' equity

B. are recognized on the income statement

C. are not recognized

D. are recognized on the income statement and as part of stockholders' equity