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Chicago Clock Corporation issued a 3-for-2 stock split of its common stock, which had a par value of $100 before the split. What dollar amount of retained earnings should be transferred to the common stock account

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Answer:

D) Retained earnings are not transferred to the common stock account

Explanation:

Options includes "A) Par value of $100 per share.  B) Market value per share on the issue date.  C)Half of the previous total amount in the common stock account.  D)Retained earnings are not transferred to the common stock account."

Retained earnings and common stock are unaffected by stocks split. Stock splits reduces the par value per share and increase the number of common stock issued and outstanding.

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