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Suppose HIB Company paid $1,500 to install computers and equipment at one of their customer sites. The customer signs a contract to use the equipment

  • Suppose HIB Company paid $1,500 to install computers and equipment at one of their customer sites. The customer signs a contract to use the equipment and pay a yearly amount to HIB for the next 5 years. How much expense should HIB record in their first year of their agreement related to installation costs?

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$1,500

$500

$300

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