Horner Company Buys a Delivery Van with a List Price

question 18

Multiple Choice

Horner Company buys a delivery 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. Sales taxes amount to $800 and the company paid an extra $600 to have a special device installed. What should be the recorded cost of the van?

• A) $49,980.
• B) $51,290.
• C) $51,380.
• D) $50,780.

---

Definitions:

Value Types

The different categories or kinds of values that people hold, which influence their attitudes, behaviors, and perceptions of the world.

Universal

Applicable everywhere or in all cases; general in nature.

Cultures

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted through languages, material objects, ritual, institutions, and art.

Culture

Represents the shared values, beliefs, behaviors, and artifacts that characterize a group of people or society.