A Company Had 300,000 Shares of $10 Par Value Common

Multiple Choice

A company had 300,000 shares of $10 par value common stock outstanding. The amount of Additional paid-in capital is $1,500,000, and retained earnings is $450,000. The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the common stock account after this issuance?

A) $6,000,000
B) $6,900,000
C) $3,000,000
D) $4,500,000