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OlgaM077 [116]
3 years ago
11

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $25,250. In addition,

Jose incurred the following expenses before using the van: shipping costs of $1,270; paint to match the other fleet vehicles at a cost of $1,440; registration costs of $2,970, which included $2,750 of sales tax and an annual registration fee of $220; wash and detailing for $121; and an engine tune-up for $327.
Required:
What is Joseâs cost basis for the delivery van?
Business
1 answer:
Temka [501]3 years ago
7 0

Answer:

$30,710

Explanation:

Calculation for Jose cost basis for the delivery van

Van Winning bid $25,250

Add Shipping costs of $1,270

Add Paint to match the other fleet vehicles $1,440

Add Sales tax $2,750

Basis for the delivery van $30,710

($25,250 + $1,270 + $1,440 + $2,750 )

Therefore Jose cost basis for the delivery van was $30,710

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