Question
On July 15, 2020, Sanders Ltd. purchased 5,000 common shares in Signet Mining Corporation for $32 per share and paid an $800 brokerage commission for
On July 15, 2020, Sanders Ltd. purchased 5,000 common shares in Signet Mining Corporation for $32 per share and paid an $800 brokerage commission for the purchase. Sanders intends to hold this investment for less than a year and classifies it as a Short-Term Investment. The market value of the shares at December 31, 2020, is $29 per share. On February 15, 2021, Signet Mining announced a 2-for-1 stock split. Sanders sold one-half of the shares on March 31, 2021 for $15 per share. After the distribution of shares relating to the stock split, the Sanders Ltd. total cost of the investment _______.
A.increases by 100%
B.increases by 150%
C.decreases by 50%
B.remains the same
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