RKJ Company has provided the following:
100,000 shares of $5 par value common stock are authorized;
70,000 shares have been issued;
65,000 shares are outstanding.
Which of the following statements is correct?
A)RKJ has 35,000 shares of treasury stock.
B)RKJ has 30,000 shares of treasury stock.
C)RKJ can reissue an additional 35,000 shares of common stock.
D)RKJ can issue an additional 30,000 shares of common stock.

Question

RKJ Company has provided the following:
 100,000 shares of $5 par value common stock are authorized;
 70,000 shares have been issued;
 65,000 shares are outstanding.
Which of the following statements is correct?
A)RKJ has 35,000 shares of treasury stock.
B)RKJ has 30,000 shares of treasury stock.
C)RKJ can reissue an additional 35,000 shares of common stock.
D)RKJ can issue an additional 30,000 shares of common stock.

Quizplus · Accepted Answer

RKJ can issue an additional 30,000 shares of common stock (100,000 shares authorized minus 70,000 shares already issued).

RKJ Company Has Provided the Following