Question
ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock - $400,000 Paid-in Capital excess of par value -
ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock - $400,000 Paid-in Capital excess of par value - preferred stock - $80,000 Paid-in Capital excess of par value-common stock - $800,000 Retained Earnings - $1,500,000 Treasury stock - $150,000 1. What is the total amount of Paid-in Capital as of December 31?
2. What is the total amount of Stockholders' Equity as of December 31?
3. Which of the following statements is TRUE regarding a 2-for-1 stock split?
a. Total contributed capital decreases
b. Par value per share will be twice the amount of what it was before the split.
c. A stockholder with ten shares before the split owns twenty shares after the split.
d. The market price of the stock will probably increase.
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