If Willis Corporation has 80,000 shares of common stock authorized, 50,000 shares of common stock issued, and holds 2,000 shares of common stock as treasury stock, the total number of outstanding shares of Willis Corporation amounts to
A) 32,000.
B) 78,000.
C) 48,000.
D) 36,000.

Question

Quizplus · Accepted Answer

Outstanding shares are calculated by subtracting treasury stock from issued shares. Thus, 50,000 issued shares minus 2,000 treasury shares equals 48,000 outstanding shares.

If Willis Corporation Has 80,000 Shares of Common Stock Authorized