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:

Reduced

A term often used to describe a decrease or diminution in size, quantity, or intensity.

35%

A percentage representing thirty-five parts out of a hundred.

Euro

The recognized monetary unit of the eurozone, utilized by 19 out of the 27 member states of the European Union.

Partnership Agreement

A legal document outlining the terms, conditions, and obligations of each partner in a business partnership.