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Neporo4naja [7]
3 years ago
14

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $37,500. In addition,

Jose incurred the following expenses before using the van: shipping costs of $850; paint to match the other fleet vehicles at a cost of $1,480; registration costs of $2,913, which included $2,700 of sales tax and a registration fee of $213; wash and detailing for $101; and an engine tune-up for $269.
What is Jose�s cost basis for the delivery van?
Business
1 answer:
Wittaler [7]3 years ago
3 0

Answer:

$42,530

Explanation:

The computation of cost basis for the delivery van is shown below:-

Cost basis for the delivery van = Purchase price + Shipping cost + Paint + Sales tax

= $37,500 + $850 + $1,480 + $2,700

= $42,530

Here the shipping cost, paint, sales tax is business preparation cost. So, for computing the cost basis of delivery van we simply added the purchase price, shipping cost, paint and sales tax.

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6 0
3 years ago
It is May 1. The quoted price of a bond with a 30/360 day count and 12% per annum coupon in the United States is 105. It has a f
larisa86 [58]

Answer: option A is the correct option.

Cash price = 106.00

Explanation:

Cash price = quoted price + accrued interest

CP = Qp + I ..........................(1)

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STEP1 : FIND INTEREST;

Because the interest is not compounded

Accrued Interest = PRT ..........(2)

P= principal ( the face value)

R = rate per annum

T= period

P= 100

Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).

Therefore;

R = 6%

Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.

Therefore;

T = 30/180

Therefore using equation 2

I = 100 × 6% × (30/180) = 1.00

Accrued interest= 1.00

STEP 2: FIND CASH PRICE

using equation 1

Cash price = 105 + 1.00 = 106.00

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3 years ago
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