Multiple Choice
The balance of the $0.50 par value Common Stock account for Murdock Company was $60,000 before its recent 3-for-1 stock split.The market price of the stock was $30 per share before the stock split.What occurred as a result of the stock split?
A) The balance in the Retained Earnings account decreased.
B) The balance in the Common Stock account declined to $20,000.
C) The market price of the stock was not affected.
D) The market price of the stock dropped to approximately $10 per share.
Correct Answer:
Verified
Correct Answer:
Verified
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