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Question - On July 1, Black Corporation had 200,000 shares of $10 par common stock outstanding. The market price of the stock was $12 per share. On the same date, Black declared a 1-for-2 reverse stock split. The par value of the stock was increased from $10 to $20, and one new $20 par share was issued for each two $10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, Black's additional paid-in capital was $650,000. What should be the balance in Black's additional paid-in capital account immediately after the reverse stock split?
a. $450,000
b. $650,000
c. $850,000
d. $1,050,000
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