Pryor Corporation issued a 2-for-1 common stock split. The shares had been originally issued at $10 per share. At what amount should retained earnings be capitalized for the additional shares issued?

Select one:

a.

$10.

b.

The average issue price of the shares.

c.

There should be no capitalization of retained earnings.

d.

Market value on the declaration date.

e.

Market value on the payment date.