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26) Tolleson Enterprises buys a computer system for $2,400,000 and pays the vendor $160,000 to...

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26) Tolleson Enterprises buys a computer system for $2,400,000 and pays the vendor $160,000 to install the computer system. Tolleson should record: A) $2,560,000 as expenses. B) $2,560,000 as equipment. C) $2,240,000 as equipment and the rest as expenses. D) $2,400,000 as equipment and $160,000 as expenses. 27) Why should a company divide up the cost of a "basket purchase" among the different assets purchased? A) A company with a longer list of assets will appear to be stronger. B) Some of the assets might be paid for more quickly than others. C) Baskets are not long-lived assets. D) The different assets might be depreciated over different useful lives. 28) Ordinary repairs and maintenance: A) are recorded as expenses. B) are part of the asset cost of equipment and facilities. C) improve the asset beyond the current accounting period. D) are always recorded as liabilities. 29) If a truck's engine is overhauled for $8,000, the journal entry would normally include a debit to: A) Vehicles. B) Cash. C) Accounts Payable. D) Depreciation Expense

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