A corporation has authorized 500,000 shares, issued 300,000 shares, and repurchased 50,000 shares. How many shares are outstanding, and what does this example illustrate about the relationship between these categories?

• A. 500,000 shares are outstanding, illustrating that authorized shares equal issued shares.
• B. 300,000 shares are outstanding, illustrating that issued shares equal outstanding shares.
• C. 450,000 shares are outstanding, illustrating that authorized shares equal outstanding shares.
• D. 250,000 shares are outstanding, illustrating that repurchased shares reduce the number of outstanding shares.

Answer: (D)