Angies Blooms purchased a delivery van with a list price of

Angie\'s Blooms purchased a delivery van with a list price of $30,000. The company was given a $3,000 cash discount by the dealer, and paid $1,500 sales tax. Annual insurance on the van is $750. As a result of the purchase, by how much will Angie\'s Blooms increase its van account? $30,000 $27,000 $29.250 $28,500

Solution

1) Delivery van account :

So answer is d) $28500

2) Depreciation is a process of cost allocation

So answer is c) Cost allocation

Purchase cost	30000
Less: Cash discount	-3000
Add: Sales tax	1500
Total delivery vant cost	28500