7) Mark purchased a delivery truck for his business. The dealership listed the delivery truck for...
7) Mark purchased a delivery truck for his business. The dealership listed the delivery truck for $22,000. Mark offered the dealer $18,000. The dealer agreed to sell the car to mark for $20,000. At what price does mark record the car in his accounting records?
Homework Answers
Mark would book the truck in the accounting records at the purchase cost of 20000
In accounting, assets are recorded at cost of acquisition. The list price of the asset does not matter. Here, Mark has agreed to pay $20000 for the truck and hence the truck would be recorded in the accounting books at 20000.
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