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 at a cost of $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 sum of the purchase price, transportation charges, sales tax, license cost, special shelving, and the cost of painting the company name on the doors.Total cost = $32,000 + $400 + $2,240 + $250 + $4,300 + $1,250 = $40,440

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