Question

What did the company do with 60,000 shares of no-par commons stock?

1) Issued the shares to employees as part of their compensation
2) Sold the shares to investors
3) Used the shares to acquire another company
4) Held the shares as treasury stock

Answer 1

The company likely held the 60,000 shares of no-par commons stock as treasury stock.

Step-by-step explanation:

The company likely held the 60,000 shares of no-par commons stock as treasury stock. Treasury stock is stock that a company has sold and later bought back. It is held by the company itself and not reissued to employees, sold to investors, or used to acquire another company.