Osbourne,Inc

question 18

Multiple Choice

Osbourne,Inc.issued 50,000 shares of common stock in exchange for manufacturing equipment.The equipment has a fair value of $1,210,000.The stock has a par value of $0.02 per share.The journal entry to record this transaction includes a ________.

• A)debit to Cash for $12,090,000
• B)credit to Gain on Sale of Common Stock for $1,260,000
• C)credit to Paid-In Capital in Excess of Par-Common for $1,209,000
• D)credit to Common Stock-$0.02 Par Value for $1,210,000

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Definitions:

Short Run

A period during which at least one factor of production is fixed, affecting the production capacity.

ATC

Average Total Cost refers to the total cost per unit of output, encompassing both fixed and variable costs.

Industry Supply Curve

A graphical representation showing the quantity of a good or service that producers are willing and able to supply at various prices.

Marginal Cost Curves

A graphical representation that shows how the marginal cost of producing an additional unit changes with the quantity produced.