Babylon Corporation has 1,000,000,$1 par shares of common stock authorized.A total of 400,000 shares have been sold to stockholders and 10,000 shares have been repurchased by the firm for later resale.How many shares are issued and outstanding? Issued Outstanding

Question

Quizplus · Accepted Answer

Issued shares = shares authorized - shares repurchased = 1,000,000 - 10,000 = 990,000
Outstanding shares = issued shares - shares held by the company = 990,000 - 400,000 = 590,000
Therefore, the correct option is (C) 400,000 issued shares and 390,000 outstanding shares.

Babylon Corporation Has 1,000,000,$1 Par Shares of Common Stock Authorized