Share
Explore BrainMass

Stockholder Equity Section

After several profitable years, Planter Corporation's stock price had increased by 10-fold. Management prefers the stock price to be within range of the majority of potential investors, and on June 30, 2013, split its stock 2-for-1. Prior to the split, Planter's stockholders' equity section showed: Common Stock, 5,000 shares at $100 par. After the split, Planter's stockholders' equity section showed:

a. Common stock, 10,000 shares at $50 par
b. Common stock, 5,000 shares at $200 par
c. Common stock, 2,500 shares at $200 par
d. Common stock, 10,000 shares at $100 par

Solution Summary

This solution discusses exactly how Planter's stockholders' equity section should be reported after the 2-for-1 stock split.

$2.19