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 there?
A)0.
B)400,000.
C)5,300,000.
D)5,700,000.

Question

Quizplus · Accepted Answer

Treasury stock is the company's own stock that has been reacquired and is being held by the company. In this case, the number of outstanding shares (4,300,000) is less than the number of issued shares (4,700,000), indicating that the company has repurchased some of its own stock. The difference between the issued and outstanding shares is 400,000, which represents the number of shares held as treasury stock. Therefore, the correct answer is B) 400,000.

Watson Company Has Provided the Following Data About Its Common