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X Ltd purchased a new motor vehicle for $50 000 less a trade-in allowance of $10 000 on its old vehicle. The balance of $40 000 was paid in cash.
X Ltd purchased a new motor vehicle for $50 000 less a trade-in allowance of $10 000 on its old vehicle. The balance of $40 000 was paid in cash. The company name and logo are painted onto the sides and roof of the vehicle at a cost of $2 000. X Ltd installs premium brakes and makes suspension adjustments at a cost of $5 000. A petrol card for use with the new vehicle is acquired at a cost of $500. The new vehicle collided with pot hole after being picked up from the dealership resulting in the replacement of 2 wheel rims and tyres at a cost of $3 000. What is the cost of the new vehicle for accounting purposes?
Select one:
a. $40 000
b. $50 000
c. $57 000
d. $60 500
