Question
Sabie Inc. has 100,000 authorized shares of common stock, 2,000 shares issued and 1,800 outstanding.It has decided to declare a 2for1 stock split when the
Sabie Inc. has 100,000 authorized shares of common stock, 2,000 shares issued and 1,800 outstanding.It has decided to declare a 2for1 stock split when the average cost per share is $10.What is the effect of this stock split?
a.Stock outstanding increases to 3,600
b.Stock issued is unchanged
c.Stockholder's equity decreases by $20,000
d.Stockholder's equity increases by $18,000
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
