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

question 66

Multiple Choice

On August 1,Red Company purchased computer equipment for $10,000 cash and also gave 100 shares of White common stock held by Red Company as an investment.The White common stock cost Red Company $5,000 and on August 1 had a market value of $4,200.Installation costs 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

---

Definitions:

Capital Contributions

The value of assets contributed to a company by its owners or shareholders.

Beginning Capital Balance

The amount of capital recorded in a company's accounts at the start of a financial period.