Dougherty Corporation purchased a new delivery van for use in
its dry cleaning business. As part of the purchase of the van the
following costs were incurred: Acquisition cost 30,000, Sales tax
1,800, Title transfer 250, and two year service contract 1,600.
What would be the capitalized cost of the van in Dougherty’s
financial statements?
$30,000
$32,050
$30,250
$33,650
When is goodwill recognized and reported as an intangible asset
in a company’s balance sheet?
The market value of a firm’s...