Montana Company was authorized to issue 200,000 shares of common stock.The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock.The number of outstanding shares of common stock was:

Question

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Outstanding shares are calculated by subtracting treasury shares from issued shares. Montana Company issued 50,000 shares and repurchased 10,000 as treasury stock, leaving 40,000 outstanding shares.

Montana Company Was Authorized to Issue 200,000 Shares of Common