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 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...
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What is the number of shares outstanding?

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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