Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200, which included $3,000 of sales tax and a registration fee of $200; wash and detailing for $50; and an engine tune-up for $250.

What is Jose's cost basis for the delivery van?

Question

Hadassah Reeves

Mathematics

13 December, 22:01

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $24,500. In addition, Jose incurred the following expenses before using the van: shipping costs of $650; paint to match the other fleet vehicles at a cost of $1,000; registration costs of $3,200, which included $3,000 of sales tax and a registration fee of $200; wash and detailing for $50; and an engine tune-up for $250.

What is Jose's cost basis for the delivery van?

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Answers (1)

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Quinn Travis · Answer 1

24,500 + 650 + 1000 + 3000 = 29,150 < = = cost basis

registration fee, washing and detailing, and engine tune-ups are costs for repair and maintenance and are not included in ur cost basis