Delivery Company Corporation purchased a delivery van for $32,500. Delivery Company also paid $1,200 in sales taxes. After driving the van for 5,000 miles, a flat tire needed to be repaired at a cost of $60.The cost of the van is:

Question

Quizplus · Accepted Answer

The cost of the van includes the purchase price and any additional costs necessary to get the van ready for use, such as sales taxes. Therefore, the cost is $32,500 + $1,200 = $33,700. The tire repair is a maintenance expense, not part of the initial cost.

Delivery Company Corporation Purchased a Delivery Van for $32,500