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.After the purchase of treasury stock,the number of outstanding shares of common stock was which of the following?

Question

Quizplus · Accepted Answer

Outstanding stock (total issued stock minus treasury stock)is stock owned by investors outside the corporation.
Outstanding shares = 50,000 Issued shares -10,000 Treasury shares = 40,000

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