Sheridan Communications contracted to set up a call center for the City of Phoenix. Under the...

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Sheridan Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Sheridan Communications will design and set-up a call center with the following costs: Design of call center $22500 Computers, servers, telephone equipment $600000 Software $195000 Installation and testing of equipment $35000 Selling commission $55000 Annual service contract $125000 In addition, Sheridan Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $205000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is O $907500. O $795000. O $817500. O $1032500. Sheridan Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Sheridan Communications will design and set-up a call center with the following costs: Design of call center $22500 Computers, servers, telephone equipment $600000 Software $195000 Installation and testing of equipment $35000 Selling commission $55000 Annual service contract $125000 In addition, Sheridan Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $205000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is O $907500. O $795000. O $817500. O $1032500.

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