Question - On August 1, Red Company purchased computer equipment for $11,900 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 fair value of $4,675. The installation costs for the computer equipment were $890 and shipping costs were $690. What amount should be the total amount debited to the computer equipment account?
$16,900.
$18,480.
$16,575.
$18,155.
Question -Salvia Company recently purchased a truck. The price negotiated with the dealer was $42,000. Salvia also paid sales tax of $2,400 on thepurchase, shipping and preparation costs of $3,400, and insurance for the first year of operation of $4,400. At what amount should the truck be recorded on the balance sheet prior to recording depreciation expense?
$44,400.
$47,800.
$45,400.
$42,000.