Angie's Blooms purchased a delivery van for $20,000. The company was given a $2,000 cash discount by the dealer, and paid $1,000 sales tax. Annual insurance on the van is $500. As a result of the purchase, by how much will Angie's Blooms increase its van account?

Question

Quizplus · Accepted Answer

The cost of the van after the cash discount and sales tax is $19,000 ($20,000 - $2,000 + $1,000). The annual insurance does not affect the cost of the van but is an additional expense. Therefore, the van account will increase by $19,000.

Angie's Blooms Purchased a Delivery Van for $20,000