RKJ Company has provided the following information:
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
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Which of the following statements is correct?
A)RKJ can issue an additional 30,000 shares of treasury stock.
B)RKJ has 30,000 shares of treasury stock.
C)RKJ can resell 5,000 shares of treasury stock.
D)RKJ can issue an additional 35,000 shares of common stock.

Question

RKJ Company has provided the following information: 
• 100,000 shares of $5 par value common stock are authorized
• 70,000 shares have been issued
• 65,000 shares are outstanding
-
Which of the following statements is correct?
A)RKJ can issue an additional 30,000 shares of treasury stock.
B)RKJ has 30,000 shares of treasury stock.
C)RKJ can resell 5,000 shares of treasury stock.
D)RKJ can issue an additional 35,000 shares of common stock.

Quizplus · Accepted Answer

RKJ has issued 70,000 shares, but only 65,000 are outstanding, meaning 5,000 shares are held as treasury stock. These can be resold.

RKJ Company Has Provided the Following Information