Dorman Company purchased a new web server on January 1. The following information and expenditures related to this acquisition were made:
Specify and justify which of the preceding expenditures should be added to the cost of the web server and disclose that cost. Indicate how the expenditures excluded from the cost of the web server would be classified.

Question

Dorman Company purchased a new web server on January 1. The following information and expenditures related to this acquisition were made:
  Specify and justify which of the preceding expenditures should be added to the cost of the web server and disclose that cost. Indicate how the expenditures excluded from the cost of the web server would be classified.

Quizplus · Accepted Answer

The Answer of Dorman Company purchased a new web server on January 1. The following information and expenditures related to this acquisition were made:
  Specify and justify which of the preceding expenditures should be added to the cost of the web server and disclose that cost. Indicate how the expenditures excluded from the cost of the web server would be classified.

Dorman Company Purchased a New Web Server on January 1