What is the effect of a 2 for 1 stock split, if a corporation has $5 par Common Stock, 200,000 shares authorized, 100,000

shares issued and 80,000 shares outstanding and the current market price of the common stock is $20?

a. The total par value of the shares increases to $2,000,000.

b. Retained Earnings decreases by $400,000.

c. Paid in Capital increases by $ 1,000,000.

d. A shareholder who owned 6,000 shares of common stock in the corporation will now have 12,000

shares with an approximate market price of $10 each.

Please explain how you determined your answer.