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.