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

Question

Quizplus · Accepted Answer

Acquisition cost = Price + Installation costs = $3,000,000 + $200,000 = $3,200,000.

Your Company Buys a Computer System from IBM for $3