On August 1,Red Company Purchased Computer Equipment for $10,000 Cash

question 70

Multiple Choice

On August 1,Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock that Red Company held as an investment.The White common stock cost Red Company $5,000 and on August 1 had a fair value of $4,200.The installation costs for the computer equipment were $700 and shipping costs were $500.What amount should be the total amount debited to the computer equipment account?

• A)$14,200.
• B)$15,000.
• C)$15,400.
• D)$16,200.

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Definitions:

Greeting

A polite word or sign of welcome or recognition exchanged between people when meeting or communicating.

Changes

Alterations, modifications, or transformations in something or someone over time.

Expression

The process of making known one's thoughts or feelings, or the manifestation of a characteristic, genetic trait, or piece of information.

Niche Construction

The process by which organisms actively modify their environment or create new environments, affecting their own and other species' evolution.