Effective May 1, the shareholders of Baltimore Corporation approved a 2 for 1 spllit of the company common stock and an increase in authorized common shares from 100,000 shares (par value $20 per share) to 200,000 shares (par value$10 per share). Baltimore's shareholders' equity items immediately before issuance of the sttock split shares were as follows:

Common stock, $20 par (100,000 shares authorized, 50,000 shares outstanding) $1,000,000

Additional paid in capital (premium of $3 per share on issuance of common stock) $150,000

Retained earnings $1,350,000

What should be the balance in Baltimore's additional paid in capital and retained earnings accounts immediately after the stock split is effected?

Additional Paid in Capital Retained Earnings

A. $0 $500,000

B. $150,000 $350,000

C. $150,000 $1,350,000

D. $1,150,000 $350,000