Pearson Industries is authorized to issue 2,000,000 shares of common stock. They issued 800,000 shares of $10 par value stock for $25 per share. The company repurchased 200,000 shares at $28 per share and reissued 50,000 of the treasury shares at $30 per share. Assuming no shares were retired, what is the number of shares outstanding? a. 750,000 shares. b. 600,000 shares. c. 650,000 shares. d. 850,000 shares. e. Cannot be determined based on the information given.

Cornerstones of Financial Accounting
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Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
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Pearson Industries is authorized to issue 2,000,000 shares of
common stock. They issued 800,000 shares of $10 par value
stock for $25 per share. The company repurchased 200,000
shares at $28 per share and reissued 50,000 of the treasury
shares at $30 per share. Assuming no shares were retired, what is
the number of shares outstanding?
a. 750,000 shares.
b. 600,000 shares.
c. 650,000 shares.
d. 850,000 shares.
e. Cannot be determined based on the information given.
Transcribed Image Text:Pearson Industries is authorized to issue 2,000,000 shares of common stock. They issued 800,000 shares of $10 par value stock for $25 per share. The company repurchased 200,000 shares at $28 per share and reissued 50,000 of the treasury shares at $30 per share. Assuming no shares were retired, what is the number of shares outstanding? a. 750,000 shares. b. 600,000 shares. c. 650,000 shares. d. 850,000 shares. e. Cannot be determined based on the information given.
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