Shown below is information relating to the shareholders' equity of Brookdale Corporation at December 31, 2010:
$\begin{array} { l r }
11 \% \text { non-cumulative preference share, } \$ 130 \text { par, 100,000 shares authorized, } & \$ 1,300,000 \
10,000 \text { shares issued } & \
\text { Ordinary shares, } \$ 1.25 \text { par, } 1,000,000 \text { shares authorized, } 600,000 \text { shares } & 750,000 \
\text { issued (of which } 6,000 \text { are held in treasury ) } & \
\text { Share premium: preference shares } & 500,000 \
\text { Share premium: ordinary shares } & 900,000 \
\text { Share premium: treasury share transactions } & 6,000 \
\text { Treasury shares (at cost: } 6,000 \text { ordinary shares) } & ( 192,000 ) \
\text { Retained earnings } & 1,350,000 )
\end{array}$

-Refer to the above data. How many ordinary shares are outstanding?

Question

Shown below is information relating to the shareholders' equity of Brookdale Corporation at December 31, 2010:
$\begin{array} { l r } 
11 \% \text { non-cumulative preference share, } \$ 130 \text { par, 100,000 shares authorized, } & \$ 1,300,000 \
10,000 \text { shares issued } & \
\text { Ordinary shares, } \$ 1.25 \text { par, } 1,000,000 \text { shares authorized, } 600,000 \text { shares } & 750,000 \
\text { issued (of which } 6,000 \text { are held in treasury ) } & \
\text { Share premium: preference shares } & 500,000 \
\text { Share premium: ordinary shares } & 900,000 \
\text { Share premium: treasury share transactions } & 6,000 \
\text { Treasury shares (at cost: } 6,000 \text { ordinary shares) } & ( 192,000 ) \
\text { Retained earnings } & 1,350,000 )
\end{array}$

-Refer to the above data. How many ordinary shares are outstanding?

Quizplus · Accepted Answer

The number of ordinary shares outstanding is calculated by subtracting the treasury shares from the issued shares: 600,000 issued shares - 6,000 treasury shares = 594,000 shares outstanding.

Shown Below Is Information Relating to the Shareholders' Equity of Brookdale