Question

The following data is available for Red Carpet Corporation at December 31: Common stock, par $3 (authorized 250,000 shares) $300,000 Treasury stock (at cost $12 per share) $1,200 Based on the data, how many shares of common stock are outstanding?

Answer 1

151000 shares of common stock are outstanding.

Step-by-step explanation:

Number of common stocks issued = 300000/3

= 100,000

common stock remaining = 250,000 - 100,000

= 150,000

Number of treasury stocks issued = 1200/12

= 1000

Number of common stocks outstanding = 150,000 + 1000

= 151000

Therefore, 151000 shares of common stock are outstanding.