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    Property, Plant & Equipment: Acquisition & Disposal

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    On August 11, Tinsle issued 20,000 shares of its $10 par value common stock in exchange for some equipment. The equipment's fair market value is estimated at $360,000 by an outside appraisal. On the date of the exchange, the stock was being actively traded at $17 per share on a major stock exchange.

    Prepare the necessary journal entry to properly record the transaction.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:56 pm ad1c9bdddf
    https://brainmass.com/business/mergers-and-acquisitions/property-plant-equipment-acquisition-disposal-308618

    Solution Preview

    Dear student,

    Equipment a/c Dr 340000
    To equity capital ...

    Solution Summary

    Provides steps necessary to prepare the necessary journal entry to properly record the transaction.

    $2.19

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