Question

The following data were reported by a corporation

authorized shares = 23,000
issued shares = 18,000
treasury shares = 4,500
The number of outstanding shares is

a. 18,500

b. 18,000

c. 27,500

d. 13,500

e. 23,000

Answer 1

To find the number of outstanding shares, subtract treasury shares from issued shares. The corporation has 13,500 outstanding shares after subtracting 4,500 treasury shares from 18,000 issued shares.

Step-by-step explanation:

The question involves understanding how to calculate the number of outstanding shares of a corporation. The number of outstanding shares can be found by subtracting the number of treasury shares from the number of issued shares. In this situation, a corporation has 23,000 authorized shares, 18,000 issued shares, and 4,500 treasury shares. Therefore, to find the number of outstanding shares, we perform the following calculation:

1. Start with the total number of issued shares: 18,000.
2. Subtract the number of treasury shares: 18,000 - 4,500 = 13,500.
3. Thus, the number of outstanding shares is 13,500.

Therefore, the answer is option d. 13,500.