Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system.Your company should record:
A) $3 million as equipment and $200,000 as expenses.
B) $3.2 million as expenses.
C) $2.8 million as equipment and the rest as expenses.
D) $3.2 million as equipment.

Question

Quizplus · Accepted Answer

The Answer of Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system.Your company should record:
A) $3 million as equipment and $200,000 as expenses.
B) $3.2 million as expenses.
C) $2.8 million as equipment and the rest as expenses.
D) $3.2 million as equipment.

Your Company Buys a Computer System for $3 Million and Pays