Question

The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first two years of operations, Luney sold 70,000 shares to shareholders and reacquired 7,000 of these shares. After these transactions, how many shares are authorized, issued, and outstanding? Luney Corporation is authorized to sell shares. Luney has shares issued. Luney has shares outstanding.

Answer 1

Luney Corporation is authorized to sell 100000 shares

luney has issued = 70000 shares

luney has shares outstanding 63000

Step-by-step explanation:

given data

maximum shares of common stock = 100,000

sold shares = 70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and luney has issued = 70000 shares

so here

we know that

luney has shares outstanding = 70000 - 7000

luney has shares outstanding 63000