Jack Co.issued 675,000 shares at $0.25 per share of common stock.If 75,000 shares were subsequently reacquired, _____ shares are considered outstanding.

Question

Quizplus · Accepted Answer

The number of shares considered outstanding is calculated as follows:

Outstanding shares = total issued shares - treasury shares

Total issued shares = 675,000
Treasury shares = 75,000

Substituting in the formula, we get:

Outstanding shares = 675,000 - 75,000
Outstanding shares = 600,000

Therefore, the correct answer is B) 600,000.

Jack CoIssued 675,000 Shares at $0