Ace Company Purchased 1,000 Shares of Nott Company at $40

Multiple Choice

Ace Company purchased 1,000 shares of Nott Company at $40 per share. Ace received an additional 250 shares from Nott Company as a stock dividend. After receiving the stock dividend, the total value of the investment in Nott and cost per share of Nott, respectively is:

A) $50,000 and $40.
B) $40,000 and $32.
C) $50,000 and $32.
D) $40,000 and $40.