Steves Outdoor Company purchased a new delivery van on January 1 for $48,000 plus $4,100 in sales tax. The company paid $13,100 cash on the van (including the sales tax), signing an 8 percent note for the $39,000 balance due in nine months (on September 30). On January 2, the company paid cash of $600 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steves Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $4,800.

Steve's Outdoor Company purchased a new delivery van on January 1 for $48,000 plus $4,100 in sales tax. The company paid $13,100 cash on the van (including the sales tax), signing an percent note for the $39,000 balance due in nine months (on September 30). On January 2, the company paid cash of $600 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve's Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $4,800. E8-5 Part 2 2. Compute the acquisition cost of the van. X Answer is complete but not entirely correct. Acquisition Cost of the Van Invoice cost $ 13,100 X Interest expense 2,340 39,000 X Installation costs 800 Painting costs Acquisition cost $ 55,240