Choice "C" is correct. When treasury stock is resold, the stock is regarded as outstanding because after the resale, the stock becomes stock held by shareholders other than the corporation itself. Prior to the stock split on September 1, the entity will have 117,500 shares of common stock outstanding, which is calculated as follows: 100,000 of common stock outstanding on January 1, plus the issuance of 15,000 shares of common stock on March 1, plus the resale of 2,500 of treasury shares on June 1. The stock split doubles the number of outstanding shares (117,500) to 235,000, which would be the number of shares outstanding at the end of Year 2.Choice "b" is incorrect. The 2-for-1 common stock split stock split on September 1 would result in the outstanding shares of 117,500 being increased to 235,000 shares of common stock outstanding.Choice "a" is incorrect. Once treasury stock is resold, it is considered as outstanding because it is owned by shareholders others than the corporation itself. The 2,500 shares of resold treasury stock is also part of the 2-for-1 common stock split.Choice "d" is incorrect. The 2-for-1 common stock split is based on outstanding shares. Before the stock split, there are 100,000 outstanding shares plus the 15,000 of issued shares plus 2,500 of resold treasury shares, which equals 117,500. After the 2-for-1 common stock split on outstanding shares, the total number of outstanding shares of common stock is 235,000, not 250,000.