Please Refer to the Following Information for Peartree Company

question 151

Multiple Choice

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
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If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what amounts will be shown for the number of shares issued and outstanding?

• A) 100,000 issued; 94,000 outstanding
• B) 99,000 issued; 95,000 outstanding
• C) 100,000 issued; 96,000 outstanding
• D) 101,000 issued; 99,000 outstanding

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Definitions:

Data Elements

Individual units of data that represent a specific piece of information, used in the structure of databases and data systems.

Workers' Compensation

This insurance offers medical benefits and compensation for lost wages to employees hurt during their employment.

Verification

The process of establishing the truth, accuracy, or validity of something.

Policy Number

A unique identifier assigned to an insurance policy.