Wide World Corporation Issued a 3-For-2 Stock Split (I

Multiple Choice

Wide World Corporation issued a 3-for-2 stock split (i.e., three new shares in exchange for each two old shares turned in) of its common shares which had a market value of $100 before the split. What dollar amount of retained earnings should be transferred to the common share account?

A) Half of the previous total amount in the common share account(s) .
B) Market value before the split.
C) Market value after the split.
D) None should be transferred.