On December 1, Gilligan Ltd

Short Answer

On December 1, Gilligan Ltd.declared a 2 for 1 stock split when the market value was $40 per share.Prior to the split, there were 200,000 shares issued and outstanding.After the stock split, the number of shares outstanding and the share capital balance were: $\begin{array}{ll}\text { Shares }&\text { Capital }\\\text { a. } 200,000 & \$ 8,000,000 \\\text { b. } 200,000 & \$ 4,000,000 \\\text { c. } 400,000 & \$ 8,000,000 \\\text { d. } 400,000 & \$ 4,000,000\end{array}$