P Festion Prin M8-23. Assessing the Financial Statement Effects of a Stock Split The following is taken from a Motley Fool article dated June 15, 2018, concerning Aflac Inc. Quacking about a split. Supplemental-insurance giant Aflac is best known for the white duck it has as is spokesperson, but the insurance products it provides to workers in the U.S. and Japan help millions get the coverage they need in areas that few insurance companies cover. That's been a successful model and the insurer has seen its share price rise substantially over the years. In February, Aflac announced that it would do a 2-for-1 split effective March 16, putting it in the form of a 100% stock dividend. CEO Daniel Amos celebrated the announcement, noting that this is the ninth split of the company's common stock since listing on the NYSE in 1974 and the first in 17 years." Aflac pointed to improving liquidity as a key reason for the move. Aflac Inc. common stock has a par value of $0.10. What adjustments will it make to its balance sheet as a result of the stock split? Select the statement below that is incorrect The company adds the par value of the stock distributed to the common stock account. The amount of outstanding shares is doubled. Earnings per share is also recomputed for all years presented in the income statement. CThe company adds the par value of the stock distributed to retained earnings