Rim Corporation allows the issuance of a maximum of 5,000,000 shares of $1 par value common stock. During its first three years of operation, Rim issued 2,400,000 shares at $30 per share. It later acquired 40,000 of these shares as treasury stock for $25 per share.

Instructions

Based on the above information, answer the following questions:

(a)How many shares were authorized?

(b)How many shares were issued?

(c)How many shares are outstanding?

(d)What is the balance of the Common Stock account?