Question

A corporation has issued 20,000,000 shares of common stock at $2 par. The corporation has 5,000,000 shares of Treasury Stock on its books. The aggregate value of the outstanding shares is:_________
A. $10,000,000
B. $30,000,000
C. $40,000,000
D. $50,000,000

Answer 1

The aggregate value of the outstanding shares "option B) $30,000,000" is correct.

Explanation:

Given,

A corporation has issued stock = 20,000,000 shares and

Treasury Stock = 5,000,000 shares

To find, the aggregate value of the outstanding shares = ?

We know that,

Outstanding stock =  Issued stock - Treasury stock

= 20,000,000 shares - 5,000,000 shares

=  15,000,000 shares

∴ Shares outstanding at $ 2 par = $ 2 × 15,000,000

= $30,000,000

Thus, the aggregate value of the outstanding shares "option B) $30,000,000" is correct.