Novak corp. purchased a delivery van with a $67000 list price. the company was given a $5600 cash discount by the dealer, and paid $2900 sales tax. annual insurance on the van is $1500. as a result of the purchase, by how much will novak corp. increase its van account?

Novak Corp. increase its van account = $58500

Explanation:

given data

purchased van List price = $67000

cash discount = $5600

sales tax = $2900

Annual insurance = $1500

to find out

how much increase its van account

solution

Novak Corp. increase its van account is express as

Novak Corp. increase its van account = List price - cash discount + sales tax 1

put here value

Novak Corp. increase its van account = $67000 - ( $5600 + $2900 )

Novak Corp. increase its van account = $67000 - ( $8500 )

Novak Corp. increase its van account = $58500

and we know that  expenses that  incurred till the date of installation has to be charged to fixed asset and annual insurance and it is taken after installation

so Annual Insurance charges is not include

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it