On June 6th, 2014 Apple Inc. declared a 7-for-1 stock split for the 861.38 million outstanding shares of its $0.00007 par common stock. What was an accounting effect? New shares outstanding=861.38 mln x7=6029.66 mln (about 6bln). The pie of shares was the same before and after split, but the company now has 6bln slices instead of 861 mln slices. From accounting standpoint, there was no need to do adjustment to Common Stock or Paid-in Capital. Thus, Total Equity after the split stayed the same Par value after the split 0.00001Calculated as follow: 0.00007/7=0.00001. Reason for split: Apple stated that it executed this 7-for-1 stock split because it wanted to make its shares available to more investors. Due to the split, the market price per share went from about $650 per share down to about $94 per share, making the stock affordable for more people. Suppose, that your dearest grandma knowing your passion for technology instead of buying you another toy (New Ipad) bought you one Apple share as a Christmas present in 2013.

On June 6th, 2014, you received a message from Apple, notifying you that you just became owner of __________Apple shares.

A. 1
B. 2
C. 7
D. 49