Ben's Delivery buys a van with a list price of $ 60,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days, which Ben's did. Non-refundable sales taxes are $ 800 and Ben's paid an extra $ 600 to have a GPS device installed. What amount should Ben's record as the cost of the van?
A) $ 51,380.
B) $ 49,980.
C) $ 51,290.
D) $ 50,780.

Question

Quizplus · Accepted Answer

The cost of the van includes the net price after discounts, sales taxes, and installation costs. The net price is $60,000 - 15% = $51,000. Then, a 2% cash discount on $51,000 is $1,020, so the discounted price is $49,980. Adding the non-refundable sales taxes ($800) and GPS installation ($600), the total cost is $51,380.

Ben's Delivery Buys a Van with a List Price of