Response to the following problem:
Mr. Regal, the owner of a limousine service, purchases an automobile from a local car dealer. The purchase price of the automobile is 532,450. There are make-ready charges of $385, delivery charges of $265, and applicable state sales lax amounting to $2,731.
1. Determine the cost at which the new automobile should be recorded on the book. of Mr. Regal's business.
2. If, upon leaving the dealership, Mr. Regal was offered $35,500 for the automobile, at what price should the new automobile be re-corded on his records? Why?
3. Does Mr. Regal own be asset automobile? Why or why not?