The Agreed Cost of an Item to Be Purchased by a Business

Multiple Choice

The agreed cost of an item to be purchased by a business on credit is $4,000. The applicable cost will be debited to advertising expense. The item is subject to 5% goods and services tax (GST) and 7% provincial sales tax (PST) . When this transaction is recorded, what amount will be debited to advertising expense?

A) $4,000
B) $4,200
C) $4,280
D) $4,480
E) None of these answers is correct.