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Osbourne Company Issued 50 000 Shares of Ordinary Shares in Exchange

Question 94

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Osbourne Company issued 50 000 shares of ordinary shares in exchange for manufacturing equipment. The equipment was valued at $1 000 000. The shares have a market value of $15 per share. Osbourne should record a gain on the sale of shares for the difference between the equipment's market value and the share's current market value.

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