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At the time that Farley Company issued a 2-for-1 stock split, the company had 1,000 shares of $5 par value common stock outstanding. Stockholders' equity
- At the time that Farley Company issued a 2-for-1 stock split, the company had 1,000 shares of $5 par value common stock outstanding. Stockholders' equity also contained $14,000 of additional paid in capital and $20,000 of retained earnings. Immediately after the stock split,
a.the amount of paid-in capital would be equal to $20,000.
b.the balance in the common stock account would amount to $10,000.
c.the balance in the common stock account would amount to $5,000.
d.the balance in the retained earning account would amount to $15,000.
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