Question: There is a 2-1 common stock split. It is valued at $35 a share before the split. At what amount should retained earnings be reduced

There is a 2-1 common stock split. It is valued at $35 a share before the split. At what amount should retained earnings be reduced for the additional shares issued?

R/E is not affected by a stock split

Par value of new shares

Market value of the new shares on the declaration date

Market value of the new shares on the distribution date

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