Company B Acquired a Capital Asset, Terms 1 Percent Discount

Company B acquired a capital asset, terms 1 percent discount if paid within 30 days. The invoice cost was $5,000. The asset should be recorded by Company B at:

A) $4,950 if this is the amount of cash paid.
B) $5,000 if this is the amount of cash paid.
C) $4,950 regardless of whether the discount is taken.
D) $5,000 regardless of whether the discount is taken.

Correct Answer:

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