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Question - Down River Express has 5,000 shares of stock outstanding with a par value of $1.00 per share. The current market value of the firm is $390,000. The balance sheet shows a paid in surplus account value of $122,000 and retained earnings of $216,000. The company just announced a 2-for-1 stock split. What will the paid in surplus account balance be after the split?
A. $61,000
B. $112,000
C. $122,000
D. $183,000
E. $244,000
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Briefly describe the nature of the information provided by each of the following financial statements: the income statement, the retained earnings statement.
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