Question

On August 1, Suba Company purchased computer equipment for $10,000 cash and also gave 100 shares of XYZ common stock that Suba Company held as an investment. The XYZ common stock cost Suba 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

Answer 1

the amount that debited to purchased cost is $15,400

Step-by-step explanation:

The computation of the total amount debited to the computer equipment account is as follows:

= Purchase cost + fair value + installation cost + shipping cost

= $10,000 + $4,200 + $700 + $500

= $15,400

Hence, the amount that debited to purchased cost is $15,400

The same is relevant and considered