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On July 1, 2021, Permission to BBC Corporation has 200,000shares of P10 par common stock outstanding and the market price of the stock isP12 per share. On the same date, BBC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, BBC's additional paid-in capital was P450,000. What should be the balance in BBC's additional paid-in capital account immediately after the reverse stock split is effected? A.P650,000 B.P450,000 C.P850,000 D.PO

On July 1, 2021, Permission to BBC Corporation has 200,000shares of P10 par common stock outstanding and the market price of the stock isP12 per share. On the same date, BBC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, BBC's additional paid-in capital was P450,000. What should be the balance in BBC's additional paid-in capital account immediately after the reverse stock split is effected? A.P650,000 B.P450,000 C.P850,000 D.PO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, Permission to BBC Corporation has 200,000shares of P10 par common stock outstanding and the market price of the stock isP12 per share. On the same date, BBC declared a 1-for-2 reverse stock split. The par of the stock was increased from P10 to P20 and one new P20 par share was issued for each two P10 par shares outstanding. Immediately before the 1-for-2 reverse stock split, BBC's additional paid-in capital was P450,000. What should be the balance in BBC's additional paid-in capital account immediately after the reverse stock split is effected?

A.P650,000
B.P450,000
C.P850,000
D.PO

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