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The balance of the $0.60 par Common Stock account for Company was $60,000 before its recent 3-for-1 stock split. The market price of the stock was $30 per share.
What occurred as a result of the split?
a. The par value per share decreased to $10 per share.
b. The balance in the common stock account increases to $180,000.
c. The market value of each share would theoretically be reduced to $10 per share.
d. The balance in the common stock account declines to $20,000.
e. The balance in the retained earnings account was decreased.
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