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On March 1, Ramey Corp. purchased a used delivery van and a car for a combined cost of $80,000 by paying $30,000 down in cash
On March 1, Ramey Corp. purchased a used delivery van and a car for a combined cost of $80,000 by paying $30,000 down in cash and financing the remaining $50,000 by issuing a two-year, 9%, note. The interest and principal on the note are both due when the note matures in two years. Ramey had the van and car appraised on the purchase date for the following amounts: Asset Appraisal Value Delivery Van $ 70,000 Car $ 30,000 Question: How much of the purchase price should be allocated to the car? Note: Do not include symbols, decimals, or cents in the numerical response
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