Consider each of the four situations below that have an outlay of $$3,000$ cash for a computer system. Using the GAAP you have learned, how it should each be recorded and why.

Purchased to use in the Accounting Department

Purchased for resale to customers

Purchased to be given away as the Grand Prize at the company's annual Sales Convention.

Purchased for the owner's son to take to college his freshman year. His son is not an employee of the business.