The purchase of a new cooling system for $150,000 to upgrade an office building owned by the company would be accounted for as:

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The purchase of a new cooling system for $150,000 would be classified as a capital expenditure in the Buildings account, as it is a long-term investment that adds value to the property. It would not be classified as an expense in the period incurred as it offers benefits for multiple accounting periods. Goodwill is used to account for the amount paid for a company that exceeds its net worth, and a patent is used to protect an invention or idea.

The Purchase of a New Cooling System for $150,000 to Upgrade