Question

The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Torres issued 2,080,000 shares at $15 per share. It later acquired 80,000 of these shares as treasury stock for $25 per share. 1. How many shares were issued

Answer 1

Answer: 2,080,000 shares

Step-by-step explanation:

The question states that 2,080,000 shares were issued at a price of $15 per share so this will be the number of shares issued.

Shares issued are those shares that were actually sold by the company from the number of Authorized shares and quite often they will be less than the number of Authorized shares allowed.