Dorado Company is authorized to issue 1,000,000 shares of common stock. They issued 400,000 shares of $5 par value stock for $18 per share. They repurchased 100,000 shares at $20 per share and reissued 20,000 of the Treasury shares at $22 per share. Assuming no shares were retired, what is the number of shares outstanding? a. 900,000 shares. b. 320,000 shares. c. 300,000 shares. d. 380,000 shares. e. Cannot be determined based on the information given.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 10EB: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first...
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Dorado Company is authorized to issue 1,000,000 shares of common stock.
They issued 400,000 shares of $5 par value stock for $18 per share. They
repurchased 100,000 shares at $20 per share and reissued 20,000 of the
Treasury shares at $22 per share. Assuming no shares were retired, what is
the number of shares outstanding?
a. 900,000 shares.
b. 320,000 shares.
c. 300,000 shares.
d. 380,000 shares.
e. Cannot be determined based on the information given.
Transcribed Image Text:Dorado Company is authorized to issue 1,000,000 shares of common stock. They issued 400,000 shares of $5 par value stock for $18 per share. They repurchased 100,000 shares at $20 per share and reissued 20,000 of the Treasury shares at $22 per share. Assuming no shares were retired, what is the number of shares outstanding? a. 900,000 shares. b. 320,000 shares. c. 300,000 shares. d. 380,000 shares. e. Cannot be determined based on the information given.
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