Kathy's Blooms purchased a delivery van with a $50,000 list price. The company was given a $5,000 cash discount by the dealer, and paid $2,500 sales tax. Annual insurance on the van is $1,250. As a result of the purchase, by how much will Kathy's Blooms increase its van account?
A) $50,000.
B) $45,000.
C) $48,750.
D) $47,500.

Question

Quizplus · Accepted Answer

The van account will be increased by the purchase price of the van, minus the cash discount and sales tax, plus the annual insurance premium.$50,000 - $5,000 - $2,500 + $1,250 = $47,500

Kathy's Blooms Purchased a Delivery Van with a $50,000 List