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The market value of Mason Corporation's common stock had become excessively high. The stock was currently selling for $180 per share. To reduce the market price of the common stock, Mason declared a 3 for 1 stock split for the 100,000 outstanding shares of its $10 par value common stock.
Required:
a. What entry will be made on the books of Mason Corporation for the stock split?
b. Determine the number of common shares outstanding and the par value after the split.
c. Explain how the market value of the stock will be affected by the stock split.
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