Manson World Reported the Following: Common Stock, $1 Par, 200,000

Multiple Choice

Manson World reported the following: Common stock, $1 par, 200,000 shares authorized, 100,000 shares issued and outstanding
What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share when the stock split is declared?

A) Retained earnings in the amount of $400,000 is transferred to the contributed capital accounts.
B) Cash decreases $400,000.
C) Additional Paid-in Capital increases $400,000.
D) A stock split has no effect on total stockholders' equity.