ANALYSIS OF STOCKHOLDERS’ EQUITY. Gilbert Systems’ December 31, 19x5, balance sheet includes the following stockholders’ equity section:

REQUIRED:
1. How many shares of common stock have been issued?
2. How many shares of common stock are outstanding?
3. What does the item “paid-in capital from treasury stock transactions” represent?
Explain briefly.

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Capital stock: Common stock, $10 par, 25,000 shares authorized $180,000 Paid-in capital in excess of par 198,000 Paid-in capital from treasury stock transactions 3,600 Total capital stock 381,600 Retained earnings 38,910 420,510 Less: Treasury stock (1,100 shares at cost) Total stockholders' equity 38,500 $382,010