Osbourne Company Issued 50,000 Shares of Common Stock in Exchange

question 48

True/False

Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment was valued at $1,000,000. The stock has par value of $0.01 per share. Osbourne should record a gain on the sale of stock for the difference between the equipment's market value and the stock's current market value.

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Definitions:

Qualitative Variables

Variables that express qualitative attributes, and are usually described by non-numeric categories or groups.

Regression Model

A statistical approach for estimating the relationships among variables, often used for prediction and forecasting.

Dummy Variables

Variables created to assign numerical values to categorical data, often used in regression analysis to include qualitative factors as independent variables.

Qualitative Variables

Variables that categorize or describe attribute characteristics without a natural numerical order or ranking.