Question

Watson Company has provided the following data about its common stock: • Par value is $1 per share • 10,000,000 authorized shares • 4,300,000 shares are outstanding • 4,700,000 shares are issued How many shares of treasury stock are thereA.0B. 5,700,000C. 5,300,000D. 400,000

Answer 1

Answer:

D) 400,000

Explanation:

If Watson Company has 4,700,000 shares issued and only 4,300,000 shares are outstanding, then Watson's treasury stock is 400,000 shares.

Shares outstanding: all the company's shares that have been acquired by shareholders

Treasury stock: total amount of shares held by the company's treasury