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Large Mart has purchased a minibus on credit on 12 April 201x. The list price of the minibus was $90,000, but Large Mart received a
Large Mart has purchased a minibus on credit on 12 April 201x. The list price of the minibus was $90,000, but Large Mart received a 10% loyalty discount because the company purchases all of its motor vehicles from this car dealer. The car dealer also charged $2,000 to deliver the minibus to the Large Mart Research & Development Department. Large Mart received the minibus on 12 April, and Large Mart started to use the minibus on that day. The invoice (for the purchase price as well as the delivery charges) from the minibus dealer was paid on 1 May 201x and Large Mart received an early payment discount of 5% when the payment was made. Required: A) Explain if the loyalty discount and the delivery charges influence the cost of the minibus in the books of Large Mart Does the loyalty discount influence the cost of the minibus in the books of Large Mart? Please provide a short explanation for your decision. Do the delivery charges influence the cost of the minibus in the books of Large Mart? Yes Please provide a short explanation for your decision
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