The annual report for Koala Corporation disclosed that 1 billion shares of common stock have been authorized. At the beginning of 2017, 820 million shares had been issued and the number of shares in treasury stock was 113 million. During 2017, the only common share transactions were that 17 million common shares were reissued from treasury and 32 million common shares were purchased and held as treasury stock.

**Required:**

Determine the number of common shares (*a*) issued, (*b*) in treasury, and (*c*) outstanding at the end of 2017.

To solve the problem, we need to break down the transactions step by step. We'll calculate the number of common shares issued, in treasury, and outstanding at the end of 2017.

### Given Data:
- **Authorized Shares:** 1 billion
- **Issued Shares at the beginning of 2017:** 820 million
- **Treasury Shares at the beginning of 2017:** 113 million
- **Reissued Treasury Shares during 2017:** 17 million
- **Purchased Treasury Shares during 2017:** 32 million

### Steps to Solve:

#### (a) **Number of Common Shares Issued at the End of 2017:**
The number of issued shares doesn't change unless new shares are issued or existing shares are retired. There are no transactions mentioned that change the issued shares directly, so:

- **Issued Shares at the end of 2017:** 820 million

#### (b) **Number of Common Shares in Treasury at the End of 2017:**
Treasury stock refers to shares that were issued but later reacquired by the company. 

1. **Initial Treasury Shares:** 113 million
2. **Shares Reissued from Treasury:** -17 million (this reduces treasury stock)
3. **Shares Purchased and Added to Treasury:** +32 million (this increases treasury stock)

- **Treasury Shares at the end of 2017:**  
\[ 113\ \text{million} - 17\ \text{million} + 32\ \text{million} = 128\ \text{million} \]

#### (c) **Number of Common Shares Outstanding at the End of 2017:**
Outstanding shares are the shares that are issued and not held as treasury stock.

\[ \text{Outstanding Shares} = \text{Issued Shares} - \text{Treasury Shares} \]

- **Outstanding Shares at the end of 2017:**  
\[ 820\ \text{million} - 128\ \text{million} = 692\ \text{million} \]

### Summary:
- **(a) Number of Common Shares Issued:** 820 million
- **(b) Number of Common Shares in Treasury:** 128 million
- **(c) Number of Common Shares Outstanding:** 692 million

Would you like further details on any part of this process?

### Additional Questions:
1. What are the implications of holding a large number of shares as treasury stock?
2. How does the reissuance of treasury shares impact shareholder equity?
3. What are the financial statement effects of purchasing treasury stock?
4. How would the issuance of new shares in 2017 have affected the calculations?
5. What is the difference between authorized and issued shares?
6. How do changes in outstanding shares affect earnings per share (EPS)?
7. What are the potential reasons for a company to buy back its shares?
8. What is the impact of treasury stock on dividends?

### Tip:
Remember, treasury shares do not pay dividends and do not have voting rights since they are essentially "retired" from public ownership, although they can be reissued in the future.

Learn how to calculate the number of common shares issued, in treasury, and outstanding at the end of 2017 for Koala Corporation. This problem involves understanding corporate finance and stock transactions, including treasury stock management and outstanding share calculations.

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