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