On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and...

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On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC 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, ABC's additional paid-in capital was P450,000. What should be the balance in ABC's additional paid-in capital account immediately after the reverse stock split is effected? On July 1, 2021, ABC Corporation has 200,000 shares of P10 par common stock outstanding and the market price of the stock is P12 per share. On the same date, ABC 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, ABC's additional paid-in capital was P450,000. What should be the balance in ABC's additional paid-in capital account immediately after the reverse stock split is effected?

Answer rating: 100% (QA)

1 Total additional paidin capital before the reverse stock split The additional paidin capital before the split is given as P450000 2 Total number of ... View the full answer