Several years ago MCI Communications Corporation purchased Satellite Business Systems (SBS) from International Business Machines Corporation (IBM). In the transaction, MCI issued common stock to IBM valued at $376 million and signed a note payable tor $104 mil¬ lion. MCI received miscellaneous assets valued at $52 million and the SBS system. REQUIRED: Respond to the following.

a. At what dollar amount was the SBS system recorded on MCI s balance sheet?

b. Describe how this transaction affected the accounting equation from MCI’s point of view.