Use the Following Information to Answer Questions

question 2

Multiple Choice

Use the following information to answer questions
Jamison Company purchased the assets of Booker Company at an auction for $1,400,000.An independent appraisal of the fair value of the assets is listed below:
-Horner Company buys a delivery van with a list price of $30,000.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 $400 and the company paid an extra $300 to have a special horn installed.What should be the recorded cost of the van?

• A)$24,990.
• B)$25,645.
• C)$25,690.
• D)$25,390.

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Definitions:

Private Good

An economic product or service that is consumed by an individual or a specific group, characterized by its exclusivity and rivalry in consumption.

Utility Function

A mathematical representation that assigns a value to every possible choice to represent the level of satisfaction or happiness it provides the consumer.

Private Consumptions

The total amount of goods and services consumed by households in an economy.

Total Amount

The complete sum or quantity of something, often referring to the total money involved in a transaction.