C is corrent. Before the stock split, 60,000 shares of common stock were issued, of which 5,000 shares were reacquired. Any time stock is reacquired, it is no longer considered to be outstanding. Therefore, there were 55,000 (60,000 - 5,000) shares outstanding before the 2-for-1 stock split and 110,000 (55,000 X 2) shares outstanding after the stock split.
A is incorrect. Before the stock split, 60,000 shares of common stock were issued, of which 5,000 shares were reacquired. Any time stock is reacquired, it is no longer considered to be outstanding. Therefore, there were 55,000 (60,000 - 5,000) shares outstanding before the 2-for-1 stock split and 110,000 (55,000 X 2) shares outstanding after the stock split.
A is incorrect. Before the stock split, 60,000 shares of common stock were issued, of which 5,000 shares were reacquired. Any time stock is reacquired, it is no longer considered to be outstanding. Therefore, there were 55,000 (60,000 - 5,000) shares outstanding before the 2-for-1 stock split and 110,000 (55,000 X 2) shares outstanding after the stock split.
D is incorrect. Before the stock split, 60,000 shares of common stock were issued, of which 5,000 shares were reacquired. Any time stock is reacquired, it is no longer considered to be outstanding. Therefore, there were 55,000 (60,000 - 5,000) shares outstanding before the 2-for-1 stock split and 110,000 (55,000 X 2) shares outstanding after the stock split.
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