Dom's Delivery purchased a van for $32,000.The transportation charges were $400,sales tax was $2,240,and the license cost $250.Special shelving was installed in the van for $4,300.In addition,Dom had the company name painted on the doors.This cost the company $1,250.The total cost of the van to record in the proper asset account is

Question

Quizplus · Accepted Answer

The total cost of the van is the purchase price plus the transportation charges, sales tax, license cost, special shelving, and the cost of painting the company name on the doors. So, the total cost is $32,000 + $400 + $2,240 + $250 + $4,300 + $1,250 = $40,440.

Dom's Delivery Purchased a Van for $32,000