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:

Wire Fraud

Wire fraud is a criminal offense involving the use of telecommunications or the internet to defraud individuals or entities of money, property, or valuable information.

Overt Act

An action that is openly done and can be clearly proved as part of the commission of a crime or tort.

Bank Fraud Statute

A legal provision aimed at fighting fraudulent activities targeting financial institutions, including deception for financial gain against banks.

Property Rights

are legal rights to possess, use, and dispose of assets or property.