ABC Ltd. issues prospectus inviting the public to subscribe for 10 million ordinary shares of $4.00 each. The terms of the issue are that $2.00 is to be paid on application and the remaining $2.00 within one month of allotment. Applications are received for 12 million shares during July 2015. The directors allot 10 million shares on 5 August 2015. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 5 September 2015. By 5 September 2015 the holders of the 2 million shares failed to pay the amount due on allotment. The directors forfeit the shares on 10 September 2015. The shares resold on 15 September 2015 as fully paid. An amount of $3.60 per share is received. The cost to re-issue the 2 million shares is $10, 000