Effective April 27, the shareholders of Dorr Corp. approved a 2-for-1 split of its common stock and an increase in authorized common shares from 100,000shares (par value $20 per share) to 200,000shares (par value $10 per share). Dorrs equity accounts immediately before issuance of the stock-split shares were as follows:Common stock, par value $20; 100,000shares authorized; 50,000shares outstanding

$1,000,000Additional paid-in capital ($3 per share onissuance of common stock)

150,000Retained earnings1,350,000The stock-split shares were issued on June 30. In Dorrs June 30 statement of equity, the balances of additional paid-in capital and retained earnings are

Additional Paid-in Capital

Retained Earnings

A.

$150,000

$350,000

B.

$0

$500,000

C.

$1,150,000

$350,000

D.

$150,000

$1,350,000