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After several profitable years, Pear Corporation's stock price had increased by 20-fold. Management prefers the stock price to be within range of the majority of potential investors, and on June 30, 2013, split its stock 4-for-1. Prior to the split, Pear's stockholders' equity section showed: Common Stock, 1,000 shares at $100 par. After the split, Pear's stockholders' equity section showed:

a) Common stock, 1,000 shares at $400 par

b) Common stock, 250 shares at $400 par

c) Common stock, 4,000 shares at $100 par

d) Common stock, 4,000 shares at $25 par

Accounting Basics, Accounting

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  • Reference No.:- M947452

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