Question - The stockholders' equity accounts of Lawrence Company have the following balances on December 31, 2010.
Common stock, $10 par, 200,000 shares issued and outstanding $2,000,000
Paid-in capital in excess of par 1,200,000
Retained earnings 5,600,000
Shares of Lawrence Company stock are currently selling on the Midwest Stock Exchange at $37.
How much of a reduction in retained earnings results when a 2-for-1 stock split is declared and issued.