Question

The following data is available for BOX Corporation at December 31, 2014:Common stock, par $10 (authorized 30,000 shares) $250,000Treasury stock (at cost $15 per share) $ 1,200Based on the data, how many shares of common stock are issued?a. 30,000.b. 25,000.c. 29,920.d. 24,920.

Answer 1

b. 25,000

Step-by-step explanation:

The computation of issue of common stock is shown below:

= (Value of shares) ÷ (par value of shares)

= ($250,000) ÷ $10

= 25,000 shares

The treasury stock is not considered in the computation part. It is a separate part. So, we ignored that treasury stock part.

The common stock issued part is always computed by dividing the common stock value with the par value.