The following data is available for BOX Corporation at December 31, 2010:
Common stock, par $10 (authorized 15,000 shares} $100,000
Treasury Stock (at cost $15 per share) 600
Based on the data, how many shares of common stock are outstanding?
A) 15,000
B) 10,000
C) 14,960
D) 9,960

Question

Quizplus · Accepted Answer

The number of shares of common stock outstanding can be calculated by subtracting the treasury stock from the authorized shares and then dividing by the par value per share.

Number of authorized shares = 15,000
Treasury Stock = 600 (at cost $15 per share, so 600/15 = 40 shares)
Number of outstanding shares = (15,000 - 40) = 14,960

Therefore, the correct answer is D, 9,960.

The Following Data Is Available for BOX Corporation at December