Question
Foster Corporation had a 2 for 1 stock split of its common stock which had a par value of $10 before the split. At what
Foster Corporation had a 2 for 1 stock split of its common stock which had a par value of $10 before the split. At what amount should retained earnings be reduced for the additional shares issued?
| A. There should be no reduction of retained earnings. |
| B. Par value. |
| C. Market value on the declaration date. |
| D. Market value on the payment date. |
| E. None of these. |
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki
9th edition
9781483375014, 1483375013, 9781506300108, 1506300103, 978-1483375021
