Stellar Systems Logistics purchases a new cargo van for $48,000. The sales taxes are $3,600. The company name is custom-wrapped on the sides of the van for $1,200. The van's annual registration fee is $200. Before use, the van undergoes a required inspection costing $350. What amount should Stellar Systems Logistics record as the cost of the new van?

Stellar Systems Logistics purchases a new cargo van for $48,000. The sales taxes are $3,600. The company name is custom-wrapped on the sides of the van for $1,200. The van's annual registration fee is $200. Before use, the van undergoes a required inspection costing $350. What amount should Stellar Systems Logistics record as the cost of the new van?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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