Central National Bank recently acquired a new computer system.Which of the following costs associated with the computer should not be recorded in the Equipment account?
A)Installation of a backup power source required for the computer
B)Replacement of several circuit boards damaged during installation
C)System programmer wages for personnel hired to install the system
D)Insurance coverage covering the transport period from the manufacturer

Question

Central National Bank recently acquired a new computer system.Which of the following costs associated with the computer should not be recorded in the Equipment account? ​
A)Installation of a backup power source required for the computer
B)Replacement of several circuit boards damaged during installation
C)System programmer wages for personnel hired to install the system
D)Insurance coverage covering the transport period from the manufacturer

Quizplus · Accepted Answer

The replacement of several circuit boards damaged during installation should be recorded as a maintenance expense, not as part of the cost of the equipment. The other options listed are costs associated with the acquisition and installation of the computer system and should be recorded as part of the Equipment account.

Central National Bank Recently Acquired a New Computer System