SIE practice questionhardTreasury Stock
A company reports 2 million issued shares and 1.6 million outstanding shares. How many shares are held as treasury stock?
- A1.6 million
- B2 million
- C400,000✓ Correct answer
- D200,000
Explanation
Why C — 400,000
Treasury stock = issued shares - outstanding shares = 2 million - 1.6 million = 400,000. Other answers are incorrect calculations.
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