Question

Mitchell Company was authorized to issue 50,000 shares of common stock. The company issued 27,000 shares of stock and later purchased 5,000 shares of treasury stock. The number of outstanding shares of common stock is: A. 45,000. B. 28,000. C. 22,000. D. 17,000.

Answer 1

C. 22,000.

Step-by-step explanation:

The company issued just 27,000 shares of the total autorized, before of reaquired the stocks these was the outstanding shares of common stock.

But later they decided to repurchased 5,000 shares this transcation in the open market it's known as treasury stock.

The company reacquired a portion of previously issued shares, in this case , 27,000 outstanding shares minus 5,000 shares repurchased by the company.