Solved on Feb 11, 2024
Determine the number of shares issued given that 100,000 shares are authorized, 60,000 were originally issued, and 10,000 were reacquired.
STEP 1
Assumptions
1. The corporation is authorized to issue a total of 100,000 shares of common stock.
2. Originally, 60,000 shares were issued.
3. Later, 10,000 shares were reacquired by the corporation.
STEP 2
Understand the concept of issued shares. Issued shares are the number of shares that have been allocated and are held by shareholders. This does not include shares that are authorized but not issued.
STEP 3
Understand the concept of reacquired shares. Reacquired shares, also known as treasury shares, are shares that were previously issued and have been bought back by the corporation.
STEP 4
Calculate the number of shares currently issued by subtracting the number of reacquired shares from the originally issued shares.
STEP 5
Plug in the given values to calculate the number of shares issued.
STEP 6
Perform the subtraction to find the number of shares issued.
The number of shares issued is 50,000.
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