Kathy's Blooms purchased a delivery van with a $60,000 list price.The company was given a $6,000 cash discount by the dealer and paid $3,000 sales tax.Annual insurance on the van is $1,500.As a result of the purchase, by how much will Kathy's Blooms increase its van account?
A)$60,000
B)$54,000
C)$58,500
D)$57,000

Question

Quizplus · Accepted Answer

The van account increases by the purchase price minus the cash discount plus sales tax: $60,000 - $6,000 + $3,000 = $57,000. Insurance is not included in the van account.

Kathy's Blooms Purchased a Delivery Van with a $60,000 List