Bloom Corporation issued 20,000 shares of common stock.Bloom purchased 2,000 shares and later reissued 1,000 shares.How many shares are issued and outstanding?

Question

Quizplus · Accepted Answer

The total number of shares issued by Bloom Corporation is 20,000. Out of these, 2,000 shares were repurchased by Bloom, which means these shares are not outstanding. Therefore, the number of outstanding shares is 20,000 - 2,000 = 18,000. However, later on, 1,000 shares were reissued, meaning these shares are back in circulation and count towards the outstanding shares. As a result, the number of issued shares remains at 20,000, and the number of outstanding shares is now 19,000 (18,000 from the original issuance minus 2,000 repurchased shares plus 1,000 reissued shares). Therefore, choice D is correct.

Bloom Corporation Issued 20,000 Shares of Common Stock