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Armstrong Company Recently Acquired a New Computer System

Question 16

Multiple Choice

Armstrong Company recently acquired a new computer system. Which of the following costs associated with the computer should not be debited to the Equipment account?


A) Insurance coverage purchased by United to cover the computer during shipment from the manufacturer.
B) Wages paid to system programmers hired to prepare the new computer for use.
C) Replacement of several circuit boards damaged during installation.
D) Installation of new electrical power supplies required for the computer.

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