Your Company Buys a Computer System from IBM for $3

question 28

Multiple Choice

Your company buys a computer system from IBM for $3 million and pays IBM $200,000 to install the computer system.Your company should record:

• A)$3 million in equipment,and $200,000 in expenses.
• B)$3.2 million in expenses.
• C)$2.8 million in equipment and the rest in expenses.
• D)$3.2 million in equipment.

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Definitions:

Diverter Gate Solenoid

A diverter gate solenoid in an automated system is an electromechanical device used to control the direction or path of material flow in a conveying system by actuating diverter gates.

ACC Value

Short for "Accumulated Value," it refers to the total sum or aggregate value gathered over time or operations within a system.