Question

mckean corporation authorized 1,500,000 shares of common stock in its articles of incorporation. on may 1, 600,000 shares were sold to the company's founders. however, on october 15, mckean repurchased 48,000 shares to settle a dispute among the founders. at this date, how many shares were issued and outstanding, respectively? a. 600,000 and 600,000 b. 1,500,000 and 600,000 c. 600,000 and 552,000 d. 552,000 and 600,000

Answer 1

The correct answer to the question regarding the number of shares issued and outstanding for McKean Corporation is c. 600,000 and 552,000, with 600,000 shares issued and 552,000 shares outstanding after the repurchase of 48,000 shares. Therefore, the correct option is C.

Step-by-step explanation:

The question deals with the number of shares issued and shares outstanding for McKean Corporation after certain transactions have taken place. When a company repurchases its shares, those shares are no longer outstanding but they are still considered issued unless they are retired. Initially, 600,000 shares were sold to the founders.

Later, the company repurchased 48,000 shares. Therefore, the number of shares still issued remains 600,000, but the shares outstanding decrease to 552,000 because 48,000 shares are no longer in the hands of shareholders. Thus, the correct answer is c. 600,000 and 552,000.