RKJ Company has provided the following: • 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 has 35,000 shares of treasury stock.
B) RKJ has 30,000 shares of treasury stock.
C)RKJ can resell 5,000 shares of common stock.
D)RKJ can issue an additional 35,000 shares of common stock.

Question

Quizplus · Accepted Answer

RKJ has issued 70,000 shares, and 65,000 are outstanding, meaning 5,000 shares are held as treasury stock. Therefore, RKJ can resell these 5,000 treasury shares.

RKJ Company Has Provided the Following: • 100,000 Shares of $5