What amount should retained earnings be capitalized

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Reference no: EM132973112

Problem 1: Pryor Corporation issued a 2-for-1 common stock split. The shares had been originally issued at $10 per share. At what amount should retained earnings be capitalized for the additional shares issued?

Select one:

a. $10.

b. The average issue price of the shares.

c. There should be no capitalization of retained earnings.

d. Market value on the declaration date.

e. Market value on the payment date.

Reference no: EM132973112

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