A company currently has 200,000 shares issued and 190,000 shares outstanding. If the company purchases 20,000 shares of treasury stock, what amount of shares will be outstanding?

170,000 shares will be outstanding.

Explanation:

From the question, it can be easily stated that -

Authorized Shares = 200,000 shares

Issued Shares = 190,000 shares

Outstanding shares = Issued shares - Treasury stock (Repurchased shares)

Outstanding shares = (190,000 - 20,000) shares

Therefore, the company has 170,000 amount of outstanding shares.

As the company repurchase the stock, those shares will be deducted from issued shares to determine outstanding shares.