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On September 1, 2016, Utah Company's balance sheet indicates there are 1,600,000 shares of $60 par value common shares in the Common Stock account and $9,000,000 in the Additional Paid-in Capital account. There are 4,000,000 shares authorized. On September 2, Utah splits its stock 2 for 1.
-What is the dollar balance of Utah's common stock account immediately after the stock split?
A) $ 72,000,000
B) $144,000,000
C) $ 36,000,000
D) $ 96,000,000

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Quizplus · Accepted Answer

The dollar balance in the Common Stock account is unchanged by the stock split; the balance remains at $96,000,000 (3,200,000 shares at the new $30 par value per share).

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