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Manson World reported the following:
?Common stock, $1 par, 200,000 shares authorized, 100,000 shares issued and outstanding
Question 1: ?What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share when the stock split is declared?
Group of answer choices
Option 1: A stock split has no effect on total stockholders' equity.
Option 2: Cash decreases $400,000.
Option 3: Retained earnings in the amount of $400,000 is transferred to the contributed capital accounts.
Option 4: Additional Paid-In Capital increases $400,000.
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