The following data is available for Santos Service Corporation at December 31 2017: Common stock, par $ \$ 10 $ (authorized 100,000 shares) $\quad $ $ \$ 400,000 $
Treasury Stock (at cost $ \$ 15 $ per share) $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\$27,000$
Based on the data how many shares of common stock are outstanding?
A) 50000
B) 40000
C) 49880
D) 38200

Question

The following data is available for Santos Service Corporation at December 31 2017: Common stock, par $ \$ 10 $ (authorized 100,000 shares) $\quad $ $ \$ 400,000 $
 Treasury Stock (at cost $ \$ 15 $ per share) $\quad $ $\quad $  $\quad $ $\quad $ $\quad $$\$27,000$
 Based on the data how many shares of common stock are outstanding?
A) 50000
B) 40000
C) 49880
D) 38200

Quizplus · Accepted Answer

The company has issued 40,000 shares of common stock (\$400,000 / \$10 par value). The treasury stock represents 1,800 shares (\$27,000 / \$15 per share). Therefore, the outstanding shares are 40,000 - 1,800 = 38,200.

The Following Data Is Available for Santos Service Corporation at December