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Ryan, Inc Purchased a Delivery Truck with a $42,000 List Price

Question 282

Multiple Choice

Ryan, Inc. purchased a delivery truck with a $42,000 list price. The company was given a $4,200 cash discount by the dealer, and paid $2,100 sales tax. Annual insurance on the truck is $1,050. As a result of the purchase, by how much will Ryan, Inc. increase its truck account?


A) $42,000.
B) $37,800.
C) $40,950.
D) $39,900.

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