Question

The following data is available for BOX Corporation at December 31, 2017: Common stock, par $10 (authorized 30,000 shares) $270,000 Treasury stock (at cost $15 per share) $ 1,200 Based on the data, how many shares of common stock are outstanding?

Answer 1

26,920

Step-by-step explanation:

At $10 par value,

Number of authorized shares = 30,000 (given)

Number of issued shares = $270,000/$10 = 27,000 shares

Number of treasury shares = $1,200/$15 = 80 shares

Since Treasury shares do not form part of outstanding shares, they will be deducted from issued shares to obtain outstanding shares

Therefore, number of outstanding shares

= 27,000 - 80

= 26,920 shares