Montana Company was authorized to issue 90,000 shares of common stock. The company had issued 33,000 shares of stock when it purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock was:

Question

Quizplus · Accepted Answer

Outstanding shares are calculated by subtracting treasury shares from issued shares. Therefore, 33,000 issued shares minus 5,000 treasury shares equals 28,000 outstanding shares.

Montana Company Was Authorized to Issue 90,000 Shares of Common