Horner Company buys a delivery van with a list price of $3,000,000. 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. Irrevocable taxes amount to $40,000 and the company paid an extra $30,000 to have a special horn installed. What should be the recorded cost of the van? a. 2,539,000 b. 2,564,500 c. 2,499,000 d. 2,569,000
Horner Company buys a delivery van with a list price of $3,000,000. 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. Irrevocable taxes amount to $40,000 and the company paid an extra $30,000 to have a special horn installed. What should be the recorded cost of the van? a. 2,539,000 b. 2,564,500 c. 2,499,000 d. 2,569,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Horner Company buys a delivery van with a list price of $3,000,000. 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. Irrevocable taxes amount to $40,000 and the company paid an extra $30,000 to have a special horn installed. What should be the recorded cost of the van?
a. 2,539,000
b. 2,564,500
c. 2,499,000
d. 2,569,000
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