Your Company Buys a Computer System from IBM for $3

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.