The Owners' Equity Accounts for Buel Industries Include Common Stock

The owners' equity accounts for Buel Industries include common stock of $24,000 with a $1 par value, capital in excess of par value of $287,000, and retained earnings of $408,500. How many shares will be outstanding and what will be the par value per share if the firm declares a reverse stock split of one-for-four?

A) 6,000; $1.00
B) 6,000; $4.00
C) 24,000; $.25
D) 96,000; $.25
E) 96,000; $4.00

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