Overton Supply Reported the Following Information at December 31,2017 Answer the Following Questions for Overton Supply

Essay

Overton Supply reported the following information at December 31,2017: $$\begin{array} { l r } \text { Common stock, } \$ 1 \text { par, } 100,000 \text { shares authorized } & \$ 80,000 \\\text { Additional paid-in capital-common } & 60,000 \\\text { Retained earnings } & \underline{40,000 }\\\text { Total contributed capital and retained earnings } & \$ 180,000 \\\text { Less: Treasury stock (2,000 common shares at cost) } & \underline{ ( 20,000 )} \\\text { Total stockholders' equity } & \underline{ \$ 160,000}\end{array}$$
Answer the following questions for Overton Supply.
1) Assuming that all shares were sold at the same price, for how much did each share of common stock originally sell?

2) What is the total amount of contributed capital at December 31,2017 ?

3) What is the amount of the book value per share at December 31,2017 ?

4) Would the book value per share increase, decrease, or remain the same, if the company declared a 2-for-1 stock split on December 31,2017? Explain.